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That it's inherently deflationary is a fact (this stems directly from the fact that there is a limited supply). That it's popular doesn't change this.
by colanderman 13y ago
That it's inherently deflationary is a fact (this stems directly from the fact that there is a limited supply). That it's popular doesn't change this.
- baddox 13y ago> That it's inherently deflationary is a fact That's true, but it's hardly a mistake. It was deliberate designed to be deflationary, and proponents of Bitcoin like that idea.
- yen223 13y agoProblem is that we've had deflationary currencies, and they were terrible. People will soon find out how easy it is to manipulate a currency with limited supply.
- baddox 13y ago> People will soon find out how easy it is to manipulate a currency with limited supply. As opposed to inflationary government currencies, the entire point of which is to be endlessly manipulated by a central authority? I don't think the track record of those is anything to be proud of.
- lmm 13y agoThen you don't remember the gold panics. The stability of inflation of inflationary government currencies over the last few decades is nothing short of astonishing.
- colanderman 13y agoI'm aware the choice was deliberate. That still doesn't make it any better of a system. And of course proponents like the idea; they're already invested in Bitcoin. The more new people who use it, the greater value proponents' existing stockpiles will have.
- baddox 13y ago> And of course proponents like the idea; they're already invested in Bitcoin. That's a circular argument. Why would they have invested in Bitcoin in the first place?
- colanderman 13y agoNot really. "Ooh look, Bitcoin is deflationary, let's invest" → invest → "Hey everyone, come use this great Bitcoin thing!" is a logical chain of action.