It seems to me that the reason Bitcoin is not living up to it's potential to free us economically from the power of the central banking system is because have not yet trained our brains to decouple the value of Bitcoin - or any other crypto currency from whatever fiat currency we are accustomed to using. As long as we continue to use any fiat currency as the standard to measure the value of a crypto currency, we're still psychologically chained to and controlled by the fiat currency. Only when we can view a crypto currency as money independent of fiat will it achieve the status of "The People's Money".
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That might be true but it will not decouple as long as people are buying it today expecting a higher price tomorrow.
And with Wall Street institutions and other entities jumping in, the supply is starting to get eaten up.
This means we will see a lot less of it. The deflationary nature of Bitcoin makes is non suitable to act in the transactional capacity.
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Can you expound on the "deflationary nature"? As I understand it, deflation is the natural order and inflation is an artificially generated tool of the central banking system. As we progress in technology and goods and services become easier to produce en-masse, they should become "cheaper". Brand new innovations are more expensive at first, until new production techniques make them cheaper to make and competitors drive prices down. So, deflation should be a good thing.
Maybe I'm just not understanding how you are using the term in this context?