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If/when bitcoins ever become an important currency they will have all the same problems as other currencies, and others unique to being bitcoins. E.g. central b
by podperson 14y ago
If/when bitcoins ever become an important currency they will have all the same problems as other currencies, and others unique to being bitcoins. E.g. central banks will try to manipulate them, governments will tax and regulate them, and people will speculate on them.
Being able to subdivide and increase in value are not attributes unique to bitcoins.
Oh, and the article DOES address this exact point.
- drcode 14y ago> Being able to subdivide and increase in value are not attributes unique to bitcoins. I didn't claim that. > Oh, and the article DOES address this exact point. No, they always assume the value of a coin remains constant when discussing subdivision.
- ars 14y ago> No, they always assume the value of a coin remains constant when discussing subdivision. If you assume the value of the coin doesn't remain constant that would cause FAR far worse problems, so there is no need to go there.
- podperson 14y ago> There are some objections to this: for example, that since each bitcoin can be infinitely divided into components, the money supply can keep growing. But that’s not related. If you have a $10 bill and I replace it with ten $1 bills, do you feel richer? This seems to address the point to me. If the supply of dollars is constrained (liquidity trap) then deflation does NOT make people happier.
- drcode 14y agoIf I have ten $1 bills and they are each worth $10 of previous spending power, I would ABSOLUTELY feel richer.