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the fact that BTC has a preprogrammed limit on the expansion of the currency makes it non-viable as a stable medium of exchange. its price will be forever volatile & unsuited as a store of value. great for gambling. useless to store wealth.
the gold standard failed. Gold is a limited supply commodity & causes hyperdeflation/hyperinflation during boom & bust cycles. The economy creates wealth, thus the demand for dollars grows, but the supply of money stays the same, so the value of money skyrockets. The value of goods collapses as the currency becomes super valuable.
look at silk road. as BTC goes from 100 to 700, an eighth of bud collapses in price. the price is 1 BTC/eighth in march & now its .09 BTC now. But producers still have their costs so when they can only get .09 BTC, they have to sell far more to get the money. its great if you are long BTC but terrible for goods valued in BTC.
This is why the federal reserve was created & the gold standard passed away.
[/eco 101]
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