> What Bitcoin really needs is a central bank to stabilize its value. No, a distributed system who's goal is getting rid of central control doesn't need a cent

> What Bitcoin really needs is a central bank to stabilize its value. No, a distributed system who's goal is getting rid of central control doesn't need a central point of control. > When the demand for Bitcoin goes up, they need to print more to keep it from skyrocketing. And again no; rather, minting more currency can be built into the network algorithmically so that hoarding causes enough inflation to offset it. Bitcoin's deflationary nature will make it a bad currency, but it's not the only crypt-currency out there, and inflation and deflation can be tied into actual transactions on the block chain to build a self regulating currency that can actually be trusted and more importantly adjusted by the economy itself, unlike central planning. Peercoin has these attributes, though I'm not convinced in the correct proportions as it's still long term deflationary. Saving causes inflation by minting new coins and spending causes deflation by destroying transaction fees. This is a better strategy for a currency, but it's not quite balanced right yet.