This is aggravated, in the long run, by the fact that they intend to support/incentivate the people who run nodes by transaction fees. Another friction factor.

This is aggravated, in the long run, by the fact that they intend to support/incentivate the people who run nodes by transaction fees. Another friction factor. It would be better to have small, fixed, predictable inflation, and pay the infrastructure with that (that is, with the newly generated money). It worked in ancient Egypt. There was a currency that was more or less a receipt on stored grain. That "money" lost value over time due to storage costs and loss to decay and rodents. That inflation stimulated trade. Currencies with so-called demurrage worked wonders in middle-century central Europe until they were banned. http://en.wikipedia.org/wiki/Demurrage_%28currency%29 http://en.wikipedia.org/wiki/Demurrage_%28currency%29 (I'm basically parroting Bernard Lietaer [which google for] here.)