Re:Bitcoin exchange rate reached $100 USD per BTC
by leishulang on Monday April 01, 2013 @04:33PM
(#5475726)
while Bitcoin is deflationary due to monopoly, crypto-currency is inflationary.
Bitcoin's value is not held by how hard it is to mine them. It's held by how bad people want to use crypto-currency for trading behaviours.
When bitcoin's value become too high to be used for normal trading, it's value will decrease, simply because people will invent new types of crypto-currency(i.e litecoin, namecoin) to replace its function. When less people using bitcoins, no matter how 'hard' its mining algorithm gets, its price will drop.
Therefore crypto-currency is inflationary, and that's why Bitcoin will become inflationary eventually.
Bitcoin's value is not held by how hard it is to mine them. It's held by how bad people want to use crypto-currency for trading behaviours.
When bitcoin's value become too high to be used for normal trading, it's value will decrease, simply because people will invent new types of crypto-currency(i.e litecoin, namecoin) to replace its function. When less people using bitcoins, no matter how 'hard' its mining algorithm gets, its price will drop.
Therefore crypto-currency is inflationary, and that's why Bitcoin will become inflationary eventually.