Just the reverse, you discourage adoption by turning a currency into an investment.
If bitcoins had constant or decreasing value through time then people would be more willing to trade them. This is why deflation is so economically dangerous.
It did encourage mining, but that doesn’t driving long term adoption and has nearly purely negative consequences.
The ideal long term strategy for adoption would have mining to provide a consistent reward in real terms over a long timeframe, low costs and high transaction volumes, and for unused accounts to be charged a small fee. Bitcoin failed all of those which is why it’s never had significant adoption as a currency.
> Bitcoin failed all of those which is why it’s never had significant adoption as a currency.
Yet there is no more successful digital currency on the planet. If you think you can make one with "better" rules please go ahead!
> This is why deflation is so economically dangerous.
The idea that inflation and constant spending are the only thing that makes an economy work is faith-based, and bitcoin was intentionally not started that way. So far I'd say it has worked quite well.
Retric|2 years ago
If bitcoins had constant or decreasing value through time then people would be more willing to trade them. This is why deflation is so economically dangerous.
It did encourage mining, but that doesn’t driving long term adoption and has nearly purely negative consequences.
The ideal long term strategy for adoption would have mining to provide a consistent reward in real terms over a long timeframe, low costs and high transaction volumes, and for unused accounts to be charged a small fee. Bitcoin failed all of those which is why it’s never had significant adoption as a currency.
toenail|2 years ago
Yet there is no more successful digital currency on the planet. If you think you can make one with "better" rules please go ahead!
> This is why deflation is so economically dangerous.
The idea that inflation and constant spending are the only thing that makes an economy work is faith-based, and bitcoin was intentionally not started that way. So far I'd say it has worked quite well.
gonehome|2 years ago
That's fine though - if you have something that holds value you can move it into whatever currency exists when you need to do that.