People ask if bitcoin is such a good currency, why aren't people using it? Which is a sensible question on the surface, but it reveals some assumptions about where they're coming from.
They live in a world where the most important feature of a currency is how widely it's accepted. Perhaps that's because they've always lived in a world where currency is counterfeit, and inflationary. Their currency continues to lose value every year, maybe by 2%, maybe by more than 100% in the case of the Argentine peso or Venezuelan Bolívar - but in any case, it will lose value. When you know the currency you hold is going to lose value, there is only one rational thing to do - spend it - and so most people see that as the primary purpose of a currency.
Of course, spending is only one purpose of money. Good money should retain value over time - and even increase in purchasing power. That's why, when people ask "Why are people just holding bitcoin, instead of using bitcoin?" to the educated ear, it sounds as if you're asking "If gold is such good money, why is your grandpa burying it in his backyard?" In reality, he's doing it precisely because it's good money.
About me
My name is Kurt Robinson. I grew up in Australia, but now I live in Guadalajara, Jalisco. I write interesting things about voluntaryism, futurism, science fiction, travelling Latin America, and psychedelics. Remember to press follow so you can stay up to date with all the cool shit I post, and follow our podcast where we talk about crazy ideas for open-minded people, here: @paradise-paradox, like The Paradise Paradox on Facebook here, and subscribe to The Paradise Paradox on YouTube, and on iTunes
Gresham's Law... bad money drives good money out of circulation. It's the same reason why 90% silver coins almost immediately disappeared from circulation in the USA after 1964. Same reason why Indians are trying to spend their shitty 500/1000 rupee notes instead of turning them in to the banks for official "corruption-resistant" replacement notes.
well said
I can ask you the same bullshit. If the gold is so good money why nobody use it to trade in a conventional level? The gold is far away from being a good currency and the btc is far away from being a currency or commodity, is a blockchain technology based and its true value is in the nodes behind it, not in the capacity to trade. What will happen when someone invent a 5 000 000 THS chip to mining?
Bad money chases out good. If I can spend $100AU or .1btc, I'm spending the dollars. They'll be worth less tomorrow.
well said
Thanks. Not mine, though. Its known as Gresham's law.
Yes. I see a lot of your posts, I like your comments, I learn things from them. You add value to this community Matt. So thanks
Sounds like 'If the gold is so great, why don't the people eat it?' A little bit of EDUCATION, not to ask stupid questions
The mainly reason because nobody use the btc to buy anything is because if you try to buy something expensive you can easily being scammed or robbed and nobody is gonna protect you, are by your own there. You can not trade in a single operation 10 000 BTC in the market without causing a lemur response. But easily you can trade 8 millions dollars without problem in a second.
Well explained upvoted and followed.