Arguments Why Bitcoin Will Survive Amidst Negative Media Attention
Bitcoin Media Attention
At a time when much of the media is saying Bitcoin’s best days are in the past, Barry Randall, a contributor for MarketWatch, presents a few arguments why Bitcoin will succeed.
Bitcoin screw-ups have resulted in fewer Bitcoins but never more of them
Despite huge profit motives (both legal and otherwise) the supply of Bitcoins is stable, growing in accordance with the algorithms that define the currency, and outside the control or influence of third parties.
The opportunity cost of Bitcoin is negative
Bitcoin only costs roughly the price of the transaction necessary to convert existing currency and which has appreciated considerably in the four years of its existence. In other words, instead of being penalized for being an early adopter, you’ve thus far been rewarded.
Some observers have complained that this anti-inflationary dynamic encourages hoarding, which in turn reduces Bitcoin’s ability to serve as a “medium of exchange,” one of the necessary attributes of any form of money. But this same dynamic cuts in both directions: in our new world where even the ultra-conservative Japanese feel the need to debase their own currency, there is huge utility in adopting a currency that by design can’t be debased.
Read the full commentary at MarketWatch.
CC image by zcopley.