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 tnt128 on Wednesday June 08, 2011 @10:52PM (#2635787)

I will argue that in order for it to achieve a stable value, one that without volatile price actions. The market size needs to be a lot bigger than current bitcoin market size. Given you cant create more bitcoins, it will require each bitcoin to be worth 1000 times more in terms of dollars for it achieve a stable value. Silver has less than 10B market cap, and yet it is still notoriously volatile

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Re:Why bitcoin failed as a currency and is on its way to bec... by etherael on Thursday June 09, 2011 @12:05AM (#2635918)

If you mean bigger in terms of market cap, that would actually imply that more investment is needed, right? If you mean that the current approximately 6.5million units is not enough however, should point out that the currency is divisible to 10 decimal places, so this is mostly a red herring.

With regards to market cap, yes, that does need to grow in order that there be a stable value. This actually suggests that the price will pretty much have to go up though, as the expansion of the bitcoin supply is known and low while the expansion of the money cap through fiat currency buys is both unknown and unlimited.

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