TheKoziTwo
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November 20, 2013, 11:17:24 PM

Bitcoin doesn't need to be a currency to be successful. It will in fact be wildly successful even if only functioning as a store of value, the tax havens amounts to trillions. The first phase is speculation and this is where we are now... people believe in bitcoins future potential and that is what drives the price up and the large market cap will make it viable for large fortunes to be stored in bitcoin, eventually it will stabilize at much higher prices. At that point it will work well as a way to settle debt even if we're not able to do as many transactions as other networks I don't think it matters. Micro-transactions can happen off-chain, big money stored safely away from government and bankers.


First of all, a store of value is not a highly volatile asset class. What makes you believe that Bitcoin will ever not be volatile?
Trade and speculation will decrease volatility, the more speculators we have the more people are trying to grab profit and their margins will decrease, leading to a more stable market. A large market cap is also a part of that.

Bitcoin doesn't need to be a currency to be successful. It will in fact be wildly successful even if only functioning as a store of value, the tax havens amounts to trillions. The first phase is speculation and this is where we are now... people believe in bitcoins future potential and that is what drives the price up and the large market cap will make it viable for large fortunes to be stored in bitcoin, eventually it will stabilize at much higher prices. At that point it will work well as a way to settle debt even if we're not able to do as many transactions as other networks I don't think it matters. Micro-transactions can happen off-chain, big money stored safely away from government and bankers.

How can big money be stored away safely if bitcoin is still tied to fiat currency? If fiat currency collapses, bitcoin no longer has anything to compare itself to, so how would we express value then? Using valuation in bitcoin itself? How would that work since there's a limited amount...
If bitcoin becomes the only currency left you will compare it with cars and houses, food and cloths.