It is a hen and egg state of affairs. For bitcoin's worth to stabilize, a big scale financial system must develop with extra companies and customers. For a big scale financial system to develop, companies and customers will look for worth stability. Fortuitously, volatility doesn't have an effect on the primary advantages of Bitcoin as a fee system to switch cash from level … [Read more...] about Isn’t speculation and volatility a problem for Bitcoin?
The deflationary spiral theory says that if prices are expected to fall, people will move purchases into the future in order to benefit from the lower prices. That fall in demand will in turn cause merchants to lower their prices to try and stimulate demand, making the problem worse and leading to an economic depression. Although this theory is a popular way to justify … [Read more...] about Won’t Bitcoin fall in a deflationary spiral?
Chances are you hear the phrase “bitcoin mining” and your mind begins to wander to the Western fantasy of pickaxes, dirt and striking it rich. As it turns out, that analogy isn’t too far off. Far less glamorous but equally uncertain, bitcoin mining is performed by high-powered computers that solve complex computational math problems (that is, so complex that they cannot be … [Read more...] about What s bitcoin mining
Some early adopters have large numbers of bitcoins because they took risks and invested time and resources in an unproven technology that was hardly used by anyone and that was much harder to secure properly. Many early adopters spent large numbers of bitcoins quite a few times before they became valuable or bought only small amounts and didn't make huge gains. There is no … [Read more...] about Doesn’t Bitcoin unfairly benefit early adopters?
A Ponzi scheme is a fraudulent funding operation that pays returns to its buyers from their very own cash, or the cash paid by subsequent buyers, as a substitute of from revenue earned by the people operating the enterprise. Ponzi schemes are designed to break down on the expense of the final buyers when there may be not sufficient new members. Bitcoin is a free software … [Read more...] about Is Bitcoin a Ponzi scheme?