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0 pointsericb12y ago0 comments

The fluctuations are a result of it's size. Currently the monetary base hasn't expanded enough to even cover the market cap of a single company the size of Tesla.

At scale, things gain stability. If a newborn loses a pound, that's 10% of their weight. If I do, it is .5% of mine.

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Steko12y ago· 2 in thread

I'm sure there are currencies with a similarly sized monetary base but which are far more stable. Bitcoin's track record as a currency is pretty laughable but just big enough to provide a nice bullet point for the Bitcoin investment vehicle/get rich quick scheme sales pitch.

ericbOP12y ago

Perhaps similar in size, but not in newness (the market needs to sort out fair value), untested exchanges, difficulty of moving money in and out. These are early adopter challenges, but they are also sources of volatility.

Steko12y ago

Bitcoin's volatility seems to be entirely a function of demand. People buy it because the price is going up. People sell it because they want to take profits or are scared the price is dropping.

You'd be crazy to use it right now for legal goods and services. The view of many Bitcoin critics (including myself) that it's horrible as a currency but a massive success as an investment vehicle seems stronger than ever.

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