- Fiat currency moves economy because people have to spend or invest their money for it to not lose value (inflation). If your money gains value as a result of deflation, people will hold on to it. And that will slow down the economy.
Therefore, wouldn't use of bitcoin as currency slow down the economy?
If bitcoin gains value as time goes on, it's a better means of storing value than using it as currency. Is bitcoin more of a commodity than currency?
Bitcoin is a threat to the foundation of government and Federal Reserve. You're basically taking away governments power to manipulate economy and print money. What do you think the odds of politicians letting that happen are? Like in a future where most money is bitcoin, the fed is no longer needed. My thoughts are politicians will not let that happen. Either by banning bitcoin or other means.
What are your thoughts on how the Federal Reserve will defend itself? Will the people succeed?