Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

I don't get your logic. Liquidity doesn't change supply. It just makes exchange simpler. A set market price has to be found between the people who want to trade Bitcoins, which will very much be influenced by the supply.

Liquidity will help to lessen volatility (fluctuation), but the price point has to be decided by the people who want to own some Bitcoin (traders, spenders and savers). Savers will drive the price upward as long as they save, but that's ok, as long as not too many people decide to liquidate their Bitcoins at the same time. It's the same for lost Bitcoins, the value for the rest of them adjusts to the demand level based on supply.



I only said this drags the price down. In order for somebody to sell, there needs to be a buyer. My comment was that hoarders are in an internal conflict - they both want to spend it to drive adoption up and, yet, continue to hoard it as supply drives the price down decreasing the value of their stash.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: