15 Dec '13, 2pm

Why Bitcoin will never be a currency — in two charts (via @TheAtlantic)

Why Bitcoin will never be a currency — in two charts (via @TheAtlantic)

Falling prices sound like a good thing, but they're not. When prices fall, people put off buying things. And when people put off buying things, companies put off investing. And then the economy slumps—and keeps slumping. Even worse, people are stuck trying to pay back debts that don't fall with wages that do. So bankruptcies pile up, and so do bank losses. That makes people too scared to borrow, and banks too scared to lend, which only makes prices fall even more. This self-perpetuating cycle of doom is what sunk the global economy in the 1930s, and what, to a lesser extent, has sunk Japan since the 1990s. And it's what has been sinking us since 2008, though this time central banks have at least kept prices from falling, just barely. Now, it doesn't make much sense, but there's actually a currency designed to create these kind of economic calamities. A currency designed fo...

Full article: http://www.businessinsider.com/why-bitcoin-will-never-be-...

Comments

  1. 19 Feb '14, 8am

    That’s a very interesting read! Will bitcoin become a future currency or not? Well, the answer is also in the future. It’s hard to predict because there are a lot of factors whether it will be a currency or not. Read more http://bitcoindaily.com/is-bitcoin-the-currency-of-the-future/.

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