Why Bitcoin price will continue to rise
And this isn’t a bad thing for trade.
The other night I attended a lecture at Griffith Uni by Jem. As with most university events, the night finished with a few pints at the local. Again arose the situation that we had all ordered food, and no-one had exact change.
Jem is from the UK. Paying him back with fiat if he didn’t have an Australian bank account just simply isn’t practical for $14. He probably doesn’t want much AUD anyway. Bitcoin solves this simple problem.
Thus, there is a legitimate use for Bitcoins.
If we think in larger scales, countries also need to “pay each back”. Imagine a bunch of countries, very close together, who trade in some sort of Economic Union. Wouldn’t it make sense if they all agreed on a Currency? I am talking about the EU obviously.
As the internet grows, trading into new markets also grows. Then it also makes sense to have a global currency. As more trades come online, more currency is required.
The caveat is that Bitcoin supply is “limited”. The amount to facilitate all the trades required, already exists. The denomination just gets smaller, and this is ok.
It doesn’t matter if 0.00001 BTC = $1,000 of your local dollars. So long as the receiver agrees it does.
The price of Bitcoin rising is just a side effect of the limited supply of BTC.