Re:A Prediction: Bitcoin Is Doomed to Fail
by cryowaffle on Wednesday November 27, 2013 @04:09PM
(#6811157)
This makes no sense. If, say the IRS, pegged the exchange at 1 what difference does that make? There are not infinite bitcoins and the IRS certainly wouldn't have all of them. People VALUE bitcoins which is why they pay a lot of USD for them.
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Re:A Prediction: Bitcoin Is Doomed to Fail
by stevewilhelm on Wednesday November 27, 2013 @04:28PM
(#6811263)
People value goods and services. They use currency to denote the value of these goods and services.
If enough goods and service providers pegged their BTC/USD exchange rate to one, the initial BTC speculators would take a bath.
But subsequent Bitcoin users would receive the benefit of Bitcoin transaction technology and the benefit of the US government's fiat currency for monetary policy.
Re:A Prediction: Bitcoin Is Doomed to Fail
by GhotiFish on Wednesday November 27, 2013 @04:47PM
(#6811370)
In a sense, it's true that the value of a currency is how much you can get for it. The problem is that you can't just peg it at a value, bitcoins supply is limited.
Imagine if every goods and service provider pegged their unit product at $1,000,000USD. The VALUE of the US dollar would drop immensely. What force could actually make them do that though? Because no one's going to pay a million bucks for a big mac, unless they have 4 billion in the bank at least. Something that can't happen to bitcoin.