I dont really see why this is news, people move trillions of digital fiat cash every day, ok some one moved 94k bit coins, but there are lot more than 94k bit coins out there, is it really that impossible that some one could have loads from the early days, lets face it the amount times people used to have news story’s about leaving old hard drives and tipping them, with a million in bit coin on them, means that there are prob some very rich geeks out their from the early days.
Ok now if some one sold a billion dollars in bit coin and cashed out that would be news.
Scarcity’s only practically of value when demand is steady or rising. I can point to any number of things that have become scarcer without increasing in value.
If demand is falling off, of course they’ll “print” less of it than the US dollar, but that doesn’t indicate any value by itself. Holding onto it only for that reason is just speculation, like holding onto Hummel figurines.
It is a garbage store of value, when you look at anything more than the number in existence. A currency’s use as a store of value is essentially zero when it as highly volatile as Bitcoin. The rate of growth in French francs is lower than even Bitcoin, but that doesn’t tell us much.
The only people I’ve seen who think BTC’s built-in and on-going deflation is a good thing are goldbugs (esp. the idiots who pay a premium for numismatic gold).
A very brief layman’s explanation to those who wonder what @gracchus is talking about, deflation means the value of money keeps going up. So you want to spend as little money as you can, and let the rest appreciate in value. The problem here is that the economy needs money to circulate; we could make a vague analogy to money being the lubricating oil in the economical engine. So deflation is, generally speaking, really bad for the economy. This means that the bitcoins, with deflation built into them, are really bad as money.
