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Comment by MustrumRidcully | Hacker News Reader

The problem of bitcoin is that there is a finite amount of it that will be available.

As use of bitcoin is scheduled to grow, the pace of the production of bitcoins needed to support the market does not keep up.

This results in a steady increase of the value of bitcoin, which is good for adoption (more people will buy it to speculate and sellers will accept it), but endangers it as a mean of paiement as buyers are always better of paying in $, which devaluates over time, instead of Btc, which will increase over time.

The reason bitcoin will not be used for daily exchanges is the same as we do not use gold anymore. But since Btc has no intrisic value, I hardly see it as a reserve money.

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> The reason bitcoin will not be used for daily exchanges is the same as we do not use gold anymore.

Everybody has a cellphone. You pay and receive "money" with your cellphone. Wallets will be redundant in the future, everything that is in your wallet will be stored in your phone.

And you know which currency can be paid with your phone? Exactly!

Well you could do the same with paper-gold. But since its value increases over time you have no incentive to prefer it over $, which have a decreasing value. Stop focusing on tech and try to think about underlying market forces.

I don't know about you, but I prefer to store the value that I work for, in something that doesn't burn 2% off each year.

And if I have to buy something, I will just trade in my value stored with the thing I want to buy. I don't see any need to go to an intermediate thing that keeps decreasing in value.

Paper money was preferred over gold because it was inconvenient to keep working with gold, not because the paper loses its value.

Said in another way, do you prefer paying for your car in bitcoins, which is likely to increase in the next years, or $, which will decrease?

Bitcoin may be good to store value (gold or land being the best), but isn't adapted for exchange, as no one wants to use it to buy something. Sellers should offer steep discount for the opportunity cost in order to obtain the money, which isn't very likely.

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