Earlier quoted context omitted.
There is generally nothing anchoring the value of any asset trading above the costs of the inputs required to make it. For example, any real estate with a premium for its "better location," suits by Armani, sunglasses by Gucci carries a similar premium. This applies to gold as well--a huge part of the value is the expectation that others will continue to like shiny things. Nothing anchors their price, or premium, oth…
Unfortunately, it won't. Money supply is a function of many things that an authority needs to control as an adjustment lever for the economy. A currency with a scheduled-deflation is not the solution. There are no problems with our currencies today. This is a solution to a non-existent problem. We have problems in the finance world that Bitcoin does not solve. For example, regulating how money supply can adjusted, or…
The thing is, I think that acknowledges that its popularity is inevitable--tragedy of the commons can only arise when people see something in their interest that is detrimental to society. But as an average joe, given a variety of assets, some deflationary, some not, storing my wealth in the deflationary one is in my interest.
The government never has to use it. I can always convert a small portion of my increasing-value bitcoin holdings into inflationary fiat at the last minute to pay the bill.