I'm starting to think what will ultimately destroy bitcoin is the concentration of coins from the early days.
Or... alternatively, there will be an uber crash which eventually will lead to stablization.
IF that is the case, there should be diminishing volatility as coin distribution involves market movements instead of hoarding...
Maybe.
This is why the distribution process of Litecoin was done in a fairer manner. But then again there are arguments for and against litecoin.
Litecoin does
not solve this problem, it just does the same thing on a different time scale. It's a misconception to think the price swings are a property of the coins or initial distribution; it's a property of the traders we have. The volume causing all this is massive, even compared to the total amount of Bitcoins out there. It's caused by strange behavior of speculators, and heavy fluctuations in the inflow of money.
We need more time. Speculators that stabilize price will slowly accumulate a part of the coins and dollars on the market, slowing down the rough ride we're seeing. But that isn't achieved in just a few months, as I've been saying for almost a year now. One year of the trading chaos is not a long time considering Bitcoins have been minted for more than three.
