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A comment on Bitcoin exchange rate reached $100 USD per BTC. Parent comment

Re:Bitcoin exchange rate reached $100 USD per BTC by Lerc on Monday April 01, 2013 @03:07PM (#5475181)
Isn't the value(not necessarily the price) of a currency the size of the market in which it trades divided by the number of units of currency in circulation.

If the market reduces because of a lack of investment, wouldn't the currency reduce because you hold the same proportion of a smaller thing, creating an incentive to stop negative growth.

There is also the factor of the OP's so-called CryptoBarons. Money is just an idea until you actually spend it. If there are a number of people living it up because they got a bunch of bitcoin really early the result would be essentially another form of bitcoin creation. Those CryptoBarons would be adding currency into circulation as they spend, currency that was effectively frozen before that point.

I'm not sure what will happen in the end, but it will certainly be an interesting ride.

[ Parent | on HN ]
Re:Bitcoin exchange rate reached $100 USD per BTC by Evbn on Monday April 01, 2013 @06:30PM (#5476353)
Yeah, there is nothing stopping "bytecoins" if early bitcoin holders hoard too much. Same as with dollars and bankers. As long as the system produces more value than the barons seize, people will get value from the system.
[ Parent | on HN ]