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> That still doesn't account for the fact that having a mathematical model for inflation is hugely advantageous for a currency. This is hugely important and ob
by maratd 13y ago
> That still doesn't account for the fact that having a mathematical model for inflation is hugely advantageous for a currency.
This is hugely important and obvious to anybody who has taken Econ 101.
Everybody knows this.
So why would you invent a currency that was deflationary in nature due to an artificial cap? Well, once you realize that the guy(s) who invented it are holding 10% of it, you'll have your answer.
Bitcoin is in a huge bubble at the moment. My only hope is that this bubble bursts before the inventors can cash out. Oh, sweet justice.
After the collapse, there is every reason to believe that Bitcoin will become something genuinely useful or at the very least, inspire something that will be useful.
- fragsworth 13y agoDeflation is only a threat because of fractional-reserve lending. The world ends up owing itself more than it actually has in currency, and it collapses in on itself in a massive disaster if and when the currency deflates. Fractional reserve lending of bitcoins seems highly unlikely to happen any time soon, if ever. And if it does start happening, it is likely to be made quickly illegal, because the system simply won't work.