Re:Litecoin price, tweets, and conflict of interest
by PeterisP on Wednesday December 20, 2017 @07:04AM
(#15968876)
These things are not independent. If LTC will be the future of money, then it will increase in value. The opposite is not necessarily true (in fact, a sustained increase in value makes it less likely for it to be used as cash), but no, IMHO you can't seriously believe that LTC will change how everyone pays everyone but this magically won't cause an increase in value.
Re:Litecoin price, tweets, and conflict of interest
by Yizahi on Wednesday December 20, 2017 @07:52AM
(#15969090)
US dollar in the 20th century was the future of money and it steadily decreased in value.
Re:Litecoin price, tweets, and conflict of interest
by PeterisP on Wednesday December 20, 2017 @09:06AM
(#15969546)
The total value of US dollars in circulation steadily and rapidly increased during the 20th century as it become used as the worldwide currency in many aspects. The per-USD value was lowered (as explicitly intended) by increasing the money supply to ensure that there would be an inflationary, not deflationary regime - e.g. https://tradingeconomics.com/united-states/money-supply-m2 shows a nearly 50-fold increase of USD supply just since 1959.
If LTC gains widespread adoption and utility, the total value of all LTC in circulation will unavoidably have to increase; in essence, the total circulation value (supply * velocity * value) of a currency has to match, by definition, the total value of goods and services traded in that currency. Since LTC supply is limited by technical means and can't/won't be increased (like USD), this inevitably will mean a significant value increase of each LTC.
He wants LTC to serve as digital cash and change how everyone pays everyone. You can believe that without believing that LTC will increase in value.
It’s a bit different than stock as stock is equity in a firm. As a currency, you don’t want volatility and increases in value. You want stability and durability.