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June 26, 2011, 07:48:04 PM |
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Most of the economic posts on this board come down to the same thing. The bitcoin market is very much a speculative beast right now. That is, the value of the bitcoin is a product of the revolutionist mentality that most Bitcoin users have and not it's intrinsic buying power. What is really interesting is that this makes the Bitcoin currency more of a commodity than a currency. In the 18 hundreds the last large gold mines were being taped out and what once seemed like a precious yet unlimited commodity suddenly became very limited. People began investing in gold and holding onto it as the supply dwindled and the value rose. Bitcoin is very much the same right now. Most people mine/buy bitcoin because they believe it's value will rise at which point they can exchange it back for good old fashion dollars.
My point is that as long people think of bitcoin as a commodity which they can buy with real money and not a currency in and off itself Bitcoin has no chance. It's just an enigma right now. Bitcoin is only worth something now because people believe it will be worth more 5 years from now. However, it won't be worth anything 5 years from now if that is the main reason why people use the currency. For the bitcoin market to shift from being speculative to being consumerist it needs to gain traction. The only way that can happen is if more businesses start accepting bitcoin. I want to pose the question to all of you and hopefully we can get some good ideas flowing. How can we promote businesses to accept bitcoin?
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