[twohlix_]

Yes that may be true, but that also means BTC is essentially in a deflationary period as the buying power of the currency is currently going up with time (unlike most Fiat, which the buying power tends to decrease during an inflationary period) so holding BTC makes sense to a lot of players with it. So there is a bit of an incentive for its use as a speculative instrument.

A lot of the speculative buyers don't really understand how volatile BTC can be and that it is a usable currency.

The reason I say its in a deflationary period (while demonstrably false as more BTC are being produced by miners) is because its BTC / person interested in BTC seems to be decreasing.

[rothbardrand]

Yes, effectively we are experiencing deflation against fiat as the price is going up... and also %80 of all bitcoin has been mined, at the next halving and the one after that the rate of new supply will be cut twice.... which means over the next 8 years, its all going to be about adoption of the ecosystem.

It may turn out that bitcoin is not used for buying daily necessities for awhile, but there are a great number of potential new businesses that will be built on and around bitcoin.

Just like the internet gave us Amazon and Facebook, bitcoin will give us next generation companies that are quite different from the current economy.

"Bitcoin is the internet of money" is really applicable slogan.