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Hyper-monetization: Questioning the "Bitcoin bubble" bubble

8 pointsby fdmabout 12 years ago

1 comment

anologwintermutabout 12 years ago
Nice idea: bitcoin is converting from a novelty to a real currency so its value is going up and this isn't necessary a asset bubble because as its value goes up it actually becomes a useful currency (unlike an asset in a buble who's utility is fixed).<p>Problem 1) No data is given on the actually equivalent monitizations of say the Euro, or the various currencies that replaced the Austra-Hungarian Goulden Krone.<p>Problem 2) Even if this were true, it doesn't change the some greater fool problem. Unlike the Euro or the Krone, there is no known cut off date where the world goes "and bitcoin is legit". So people will delay spending and hope their money becomes more valuable. Sounds like it comes back to the argument over deflation.