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Even in the very article at hand, it points out that there is a standard economic criticism applicable to deflating currencies that BitCoin may be vulnerable to

by vrotaru 15y ago

Even in the very article at hand, it points out that there is a standard economic criticism applicable to deflating currencies that BitCoin may be vulnerable to. Yes, the armchair deflationary spiral theory. With the exception of labor theory of value, I do not know of any other economic theory whose premises are a) so thoroughly laughable b) lacking any kind empirical evidence. In an attempt to reduce the noise/signal ratio (usually high) in such debates... Yes, I know the usual arguments in favor of Deflation Scare and I devoted a fair amount of time thinking and debating these matters. Done my homework, so to speak. But feel free to surprise me, with an argument I missed.

jerf 15y ago
That's your persuasive counterargument? "That theory sucks"? I don't deny the standard case is controversial (which is also, BTW, not the same as "lacking in any evidence"; there's plenty of evidence, it's just that what it means is still debated), when discussing deflation spirals of a relatively small size, but when you're talking about a currency that will deflate by orders of magnitude, and that necessarily must do so if it going to be any sort of successful, I think you need more than "Ha ha ha! I laugh in the face of your argument!" I do not know of a real world parallel of such a thing, and when it comes to systems this complicated the presumption by any sane systems engineer is that your new proposal won't work. I for one am not going to take it as axiomatic that BitCoin is inevitably going to work and the burden of proof is on those who think it won't work (another psychologically tempting position). Quite the opposite. You claim to have done your homework... have you considered actually sharing it with us? Or are derisive italics all you really have?
- vrotaru 15y ago
  That's your persuasive counterargument? "That theory sucks"? Thank you, you've put it more succinctly than I did. As for "plenty of debated evidence" it just means no evidence. Evidence should be evident, I'd say. when you're talking about a currency that will deflate by orders of magnitude How about you (or TAOTFA) have a look at a) Bitcoin Monitor b) The "Buying" section on bitcoin forums c) this: *You may be right, but I have some anecdotal evidence to the contrary. Since the $10+ spike in bitcoin prices we've sold considerably more shirts in our store. http://forum.bitcoin.org/index.php?topic=13087.msg181094#msg181094 http://forum.bitcoin.org/index.php?topic=13087.msg181094#msg...

by vrotaru 15y ago

jerf 15y ago

That's your persuasive counterargument? "That theory sucks"? I don't deny the standard case is controversial (which is also, BTW, not the same as "lacking in any evidence"; there's plenty of evidence, it's just that what it means is still debated), when discussing deflation spirals of a relatively small size, but when you're talking about a currency that will deflate by orders of magnitude, and that necessarily must do so if it going to be any sort of successful, I think you need more than "Ha ha ha! I laugh in the face of your argument!" I do not know of a real world parallel of such a thing, and when it comes to systems this complicated the presumption by any sane systems engineer is that your new proposal won't work. I for one am not going to take it as axiomatic that BitCoin is inevitably going to work and the burden of proof is on those who think it won't work (another psychologically tempting position). Quite the opposite. You claim to have done your homework... have you considered actually sharing it with us? Or are derisive italics all you really have?

vrotaru 15y ago
That's your persuasive counterargument? "That theory sucks"? Thank you, you've put it more succinctly than I did. As for "plenty of debated evidence" it just means no evidence. Evidence should be evident, I'd say. when you're talking about a currency that will deflate by orders of magnitude How about you (or TAOTFA) have a look at a) Bitcoin Monitor b) The "Buying" section on bitcoin forums c) this: *You may be right, but I have some anecdotal evidence to the contrary. Since the $10+ spike in bitcoin prices we've sold considerably more shirts in our store. http://forum.bitcoin.org/index.php?topic=13087.msg181094#msg181094 http://forum.bitcoin.org/index.php?topic=13087.msg181094#msg...