Hi,
1. Counter Balance: The fiat system adopted and now exists within a counter balance system. If you buy yen for gbp, yen value goes up, gbp goes down. Same the whole world around, these currencies exist side by side, they counter balance each other. Yet bitcoin exists above them all. Bitcoins counter balance is the fiat system itself. When bitcoin value goes up that is because the fiat system has invested itself in it.
6. Economic Growth: Because the people won't be paying tax for the government to start wars and give to their bank buddies, people will have more money to spend, which will give growth to small and big businesses alike (whichever become part of bitcoin sooner will benefit most, especially from the increase in bitcoin value), which will give rise to more jobs, etc, etc, encouraging other businesses to take on bitcoin as they see their bitcoin neighbors booming with growth.
#1: Good observation. When something goes up in value, always something else must become less valuable. When ppl start buying bitcoin and / or gold in droves, paper money's value dwindle. Ultimate, we get hyperinflation. Game over for fiat money. But we need a debt system, so maybe Ripple or similar will rise as a consequence.
#2: I would say : "Because the people won't be paying
the hidden inflation tax for the government to start wars..." I suspect we wil have tax forever, but wars are always payd by the stealth hidden tax called inflation. (Sometimes in payed in advance by twin sister Deficit Spending)
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so true .... oth i see a stable growth pattern if one neglects may-nov 2011, aka as the 2011 btc hype episode.
