It's worse. Continuous deflation (increasing real value) is a very undesirable characteristic for a currency as it dis-incentivizes the actual use of said curre

It's worse. Continuous deflation (increasing real value) is a very undesirable characteristic for a currency as it dis-incentivizes the actual use of said currency. Why spend money on anything not absolutely essential if the money itself will appreciate in value more than any investment you can make with it, and with no risk? It might be okay for domain specific uses but for general purpose currency use it's awful. If the world ran on Bitcoin as presently implemented we would enter a permanent depression. (Too much inflation is also really bad, but Bitcoin definitely doesn't have that problem.) I'm very bullish on the idea of cryptocurrencies and the technology of block chains, but I regard Bitcoin as kind of a proof of concept toy. It's version 0.1 alpha of something that might someday change the world.