Re:The Bitcoin Bubble and a Bad Hypothesis
by millstone on Wednesday April 17, 2013 @09:15PM
(#5568401)
Two comments:
1. Without the decentralized network that you mention, a bitcoin has no value. But the decentralized network requires some level of acceptance for anyone to run it. So bitcoin's value depends on its acceptance, in a way that gold does not.
2. Bitcoin certainly incurs inflation risk - the large recent drop in the purchasing power of a bitcoin is inflation, after all. Perhaps you meant "without risk of manipulation by the currency issuer," but currencies may move for many other reasons.
1. Without the decentralized network that you mention, a bitcoin has no value. But the decentralized network requires some level of acceptance for anyone to run it. So bitcoin's value depends on its acceptance, in a way that gold does not.
2. Bitcoin certainly incurs inflation risk - the large recent drop in the purchasing power of a bitcoin is inflation, after all. Perhaps you meant "without risk of manipulation by the currency issuer," but currencies may move for many other reasons.