[ExI] Long Term Bitcoin Catastrophe?

[Kelly Anderson]

On Wed, May 22, 2013 at 6:14 PM, Brent Allsop <brent.allsop at canonizer.com>wrote:

I think that the most intriguing thing about BitCoin is that it is
independent of any and all governments, which makes it a hedge against
central banks funny business. If you believe quantitative easing is a bad
thing, then buy BitCoins. If I had two cents to rub together, I would. At
the moment, I'm not sure how I'll pay rent at the end of the month... :-(

As to mining Bitcoins, I think that the current situation is that if you
mine them to sell immediately, you won't make much, if any, money. But if
you mine them to hold, there could be a significant potential upside.

What is the group consensus on the central banks issue? Will the central
banks continue their bad habits of printing unprecedented amounts of money
for the foreseeable future?

>From Wikipedia...
*Gresham's law* is an economic principle that states: "When a government
overvalues one type of money and undervalues another, the undervalued money
will leave the country or disappear from circulation into hoards, while the
overvalued money will flood into circulation." It is commonly stated as:
"Bad money drives out good".

If Bitcoin is "Good" or "better" than dollars, etc. then it will be
hoarded, and only occasionally spent.

However, the unique nature of Bitcoin and the things you can do with it
that you can't easily do with other money forms (money laundering, a degree
of anonymity, etc.) may help keep some Bitcoins circulating no matter how
valuable it appears that they may become some day. There will always be
some profit takers who think they see the top of a bubble.

-Kelly
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