Are you suggesting that bitcoins are struggling because people will not want to spend something that increases in value?
So bitcoins aren't purchased because they will increase in value too much?
That is the same circular logic that is used to explain "deflationary spiral", and it doesn't make sense.
Consider high tech equipment like a computer. You know that the price of a computer (or TV, or hard drive, or graphics card) will fall rapidly but you buy it anyway because you want to purchase it. It doesn't actually matter much that the price of the item is deflating. And these are for luxury items. Price deflation of goods matters even less when it is for something essential, like basic food items.
In other words, what you are saying is that the price of items priced in bitcoins will fall (because your bitcoins will become worth more and more), and therefore people will not spend their coins. However, we already see real world examples of deflating prices, where people still buy these items.
Are you suggesting that bitcoins are struggling because people will not want to spend something that increases in value?
So bitcoins aren't purchased because they will increase in value too much?
That is the same circular logic that is used to explain "deflationary spiral", and it doesn't make sense.
Consider high tech equipment like a computer. You know that the price of a computer (or TV, or hard drive, or graphics card) will fall rapidly but you buy it anyway because you want to purchase it. It doesn't actually matter much that the price of the item is deflating. And these are for luxury items. Price deflation of goods matters even less when it is for something essential, like basic food items.
In other words, what you are saying is that the price of items priced in bitcoins will fall (because your bitcoins will become worth more and more), and therefore people will not spend their coins. However, we already see real world examples of deflating prices, where people still buy these items.