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It's a linear argument: it won't succeed (in part) because it's designed to be deflationary, so it will fail, so it'll lose its current value.

(Note: it's not my argument, I'm just trying to explain why they aren't necessarily incompatible)



If it fails it's because it has no value. If criminals need it to transfer funds (and they have quite a business), then it might make BitCoin valuable. It doesn't matter if there is a limited amount of BitCoins if the end point is to exchange them.


(Market) value is set by how much people are willing to pay for it, so they do have value.




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