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I have the feeling this is in reaction to the capped total value of the bitcoin monetary system which generates deflation over time and incentivizes sparing cur
by jdangu 14y ago
I have the feeling this is in reaction to the capped total value of the bitcoin monetary system which generates deflation over time and incentivizes sparing currency instead of using it.
By adding a component of inflation, you increase exchanges.
Let's just get rid of the cap and keep things simple.
edit: Of course from a micro-economic perspective this doesn't make sense unless it was forced onto us by a government as a de facto standard.
- stevedekorte 14y agoYou don't really increase exchange with other currencies if its low friction to do transactions in BTC as the optimal strategy is to keep your savings in assets that increase the most in purchasing power and only move value out at the moment of a purchase and only for the amount of the purchase. Likewise, the seller prefers to receive the highest appreciating asset in exchange if friction is low.
- maaku 14y agoInflation and demurrage do not have exactly equivalent effects, as we discuss in the about page http://freico.in/about/ http://freico.in/about/