If bitcoin is successful as a currency it will take market share from other currencies. This means that its price will continue to go up while the price of other currencies such as the dollar will go down. What bitcoin gains in purchasing power comes roughly at the expense of the dollar and other national currencies.
In the extreme case, if bitcoin were to completely take the place of the dollar, the entire wealth in the economy would shift from holders of dollars to holders of bitcoins. The earlier people buy bitcoins the more they can profit from this price increase and the longer people hold on to dollars and other currencies, the more they will suffer from its depreciating value.
Bitcoin's success then implies a massive transfer of wealth from late adopters to early adopters.
Is such a redistribution of wealth and power fair, if it is based on nothing but the order in which people adopted bitcoin? Can it be justified?
In the extreme case, if bitcoin were to completely take the place of the dollar, the entire wealth in the economy would shift from holders of dollars to holders of bitcoins. The earlier people buy bitcoins the more they can profit from this price increase and the longer people hold on to dollars and other currencies, the more they will suffer from its depreciating value.
Bitcoin's success then implies a massive transfer of wealth from late adopters to early adopters.
Is such a redistribution of wealth and power fair, if it is based on nothing but the order in which people adopted bitcoin? Can it be justified?
