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Author Topic: The Double Benefits of High Demand  (Read 2232 times)
NewLibertyStandard
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April 02, 2010, 09:02:24 AM
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There are two benefits to creating high demand for bitcoins. The first and obvious benefit is that you'll end up with a wealth of bitcoins. The second and more subtle benefit is that as demand outstrips supply, people will exchange local currency for bitcoins which will allow you to more easily exchange your bitcoins for local currency.

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bitcoinuser
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April 09, 2010, 03:44:44 AM
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There are two benefits to creating high demand for bitcoins. The first and obvious benefit is that you'll end up with a wealth of bitcoins. The second and more subtle benefit is that as demand outstrips supply, people will exchange local currency for bitcoins which will allow you to more easily exchange your bitcoins for local currency.

however, exchanging other currencies for bitcoins won't create more bitcoins ... so as more people use it, there will be a hoarding of coins [at least according to what we learned in economics, but this may be inaccurate].

to be an "open currency" where the supply increases as user-base/uasage increases is important. at the same time, it should not be controllable by a central source (ex. a "closed currency"), and not be 'faked' into making money, ... so the quesiton is HOW is this done with a peer2peer setup?

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July 08, 2010, 04:43:44 PM
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to be an "open currency" where the supply increases as user-base/uasage increases is important.

Who says this is important?  As more users join in, value will probably go up per bitcoin and people might hold fewer nominal bitcoins, but I don't think that makes much of a difference.

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July 08, 2010, 05:33:41 PM
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to be an "open currency" where the supply increases as user-base/uasage increases is important.

Who says this is important?  As more users join in, value will probably go up per bitcoin and people might hold fewer nominal bitcoins, but I don't think that makes much of a difference.

Any attempt to fix the value of a bitcoin in terms of price is going to fail, and is not necessary. Keeping the supply fixed is the fairest way to go about it and let the market decide the value.

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