Bitcoin Forum

Golds foundation is primarily that its scarce and that it has been used as money for thousands and thousands of years.

Fiat currencies primarily foundation has been the power of government to tax it and "force" the people of each and every country to use it. Also that they say in the open that fiat currency has inflation goals that are important etc. (not that this has been the case the last years).


So what can be Bitcoins foundation? Realistically it should be in a way where fiat currency can't compete with it. I'm thinking like online gambling in US should be a strong foundation. It's not a shady business (legit in EU etc), but US has opened the doors to give Bitcoin a strong foundation. Beside really shady business as selling drugs etc. what good and strong foundation do you see that can make Bitcoins get to the mass (without speculation)?

I think this question is REALLY important. When this question in answered, this should be the primarily goal to act on. Because getting more and more merchants that sell through internet isn't enough, because I don't see that as a strong foundation. Or getting more exchanges online or even getting more media attention. In the end this wont make the currency strong, I hope that the bitcoin community understands this.

On a related note:
 - http://en.bitcoin.it/wiki/Intrinsic_worth_brainstorming
 - http://en.bitcoin.it/wiki/Ideal_Properties_of_Digital_Commodities

This is something I always hear people bring up. Bitcoin has no value, no foundation, blah blah blah. I think one of the bloody brilliant things about Bitcoins that people never bring up is that the currency gives extremely intelligent people (nerds with mining rigs ;)) access to tons of easy funding from people on wall street that are simply speculating. This in turns fuels the production of small businesses that use Bitcoins. Most of those mining rig owners know how to code, and they create businesses that stimulate the Bitcoin economy. That is the value in Bitcoin. It brings highly intelligent people who know how to code into a partnership with funding from wall street. That value is the foundation that will make the Bitcoin strong.

(That being said, I do predict that there will be a major boom in the Bitcoin gambling industry. ESPECIALLY in the US since it's quasi-legal using bitcoins to play some games of skill.)

I often times read on this board that it's the crazy swings over at the Bitcoin exchange(s) that's driving the disdain for Bitcoin because the average Americans (not forgetting that Bitcoin is a global currency) are so fickle, they would never buy into anything that doesn't sell at a somewhat stapble price.


http://www.npr.org/news/graphics/2011/08/gr-oil-gas-prices-20110809-300.gif