Why bitcoin failed as a currency and is on its way to become an asset

Re:Why bitcoin failed as a currency and is on its way to bec... by GeoffreyHull on Wednesday June 08, 2011 @10:18PM (#2635717)

On its way to becoming an asset indeed. Over the last year bitcoin has seen a ~20,000% return rate. If bitcoin gets uberpopular (i.e. each coin is worth ~ US$2m) within 20 years, then BitCoin would have a return rate of ~ 85% per year consistently for the next 20 years. There is practically nothing else with that close a return rate, so the only financially sound course is to hoard your BitCoin, not spend them.

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Re:Why bitcoin failed as a currency and is on its way to bec... by hugh3 on Wednesday June 08, 2011 @10:27PM (#2635734)

"Did you know that disco record sales were up 400 per cent for the year ending 1976? If these trends continue, A-y-y-y!"

- Disco Stu

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Re:Why bitcoin failed as a currency and is on its way to bec... by GeoffreyHull on Wednesday June 08, 2011 @10:36PM (#2635746)

Hmmm. I don't think I was suggesting that we'll continue to see a rate of return of 20,000%. What I was suggesting is that many will perceive BitCoin's historical performance as an asset as proof it would be better treated as an asset, not a currency.

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Re:Why bitcoin failed as a currency and is on its way to bec... by tnt128 on Wednesday June 08, 2011 @10:38PM (#2635753)

what's a very big if. OP was more about why people will not treat bitcoin as a currency

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