User talk:Bwduliie
From Thikipedia
Current revision as of 23:54, 14 February 2013
[edit] GjWXpaFXtNEBHJKU
Ray, you don't seem to understand that money is both an neesitmnvt and a medium of exchange. The very reason money is sought as a medium of exchange is because it is something that everyone recognizes as having value. Sure there is an element of psychology about this, but a belief in hard money, as opposed to fiat money, is due to a long history of monetary abuses.You also don't seem to understand the time preference of people. Some people like to set aside present day production, in order to pay for some good or service in the future. This is known as savings, not hoarding. The term hoarding came about due to an idea called velocity of money , a Keynesian idea that leaves much to be desired.People are saving bitcoins because they know the value will increase in the future. They way the system is set up is that more and more effort will be needed in the future to mine bitcoins, so that there will be a leveling off of the monetary supply. When this happens, it will be interesting to see what happens. Austrian economists predict that prices will stabilize. Also, given the irresponsibility of our political and economic leaders, bitcoins may attract followers as the dollar continues its slide to zero value.
