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Just out of curiosity: Has anyone throughly debunked the deflation argument against Bitcoin? Even the Bitcoin wiki seems fairly uncertain that deflation will no

by jljljl 13y ago

Just out of curiosity: Has anyone throughly debunked the deflation argument against Bitcoin? Even the Bitcoin wiki seems fairly uncertain that deflation will not be a problem with Bitcoin. I still struggle with how a fixed money supply vs. a steadily growing economy does not lead to deflation, and (eventually) hoarding.

SeanLuke 13y ago
Quite to the contrary: I am fairly convinced deflation and currency speculation will be the end of Bitcoin, because there is no central authority which can stop it from happening.
- pbreit 13y ago
  So you're both concerned about deflation and hoarding but for different reasons?
- UK-AL 13y ago
  There needs to be a feedback loop in cyptocurrencies. They look at the value of the coins on a exchange, the adjusts the amount of money generated to keep inflation at a constant 1% or 2% or whatever.
  - jljljl 13y ago
    This would actually make sense, and it's what some economists have proposed instead of the Federal Reserve: an algorithm that targets a set inflation rate or NGDP growth level.
  - SeanLuke 13y ago
    The question is: who gets the money?