>Deflation. There's a creed in mainstream economics that deflation is bad, repeated here. "if your money is getting predictably more valuable, why would you want to spend it?" It's just false. Would you buy a computer today if you can buy a more powerful one by waiting until tomorrow? People do.
s/spend/invest/. I mean, why would anyone spend money on food? There's no storable value! I can dream up silly situations too, y'know.
Meanwhile, there's a bit more to modern economic theory than a single pithy quote. Like, when deflation actually happens, you get this:
And this is deflation over a short scale. Bitcoin will experience constant, effectively unstoppable deflation every day after 2020.
>Mainstreamers like the leaves-on-the-fire effect of inflation and also like to overlook the fact that stimlus impairs cyclic corrections
Got some numbers on that? I seem to recall basically no problems occurring during periods when inflation rates are 0-10%.
>and detracts from the role of money as a store of value.
Money isn't supposed to be a store of value; the object of money is to facilitate exchange, not to inhibit it. Investments are a store of value. If you want to store value, invest in the S&P 500.
>"When Something Goes Wrong, It Will Die." I found the logic here non-sequiter. Bitcoin will be tested but from what we know about it at the moment, it looks solid.
SHA256 will -never- be broken, that's for sure!
>If we had a period of high inflation, it's reasonable to expect people would trust finite-supply bitcoins over an unending supply of newly-minted, inflating notes.
The medium that is more easily exchanged will be exchanged. Ever wonder why e-gold never took off, even before governments tried to stop it?
Mind you, I really, really want Bitcoin to succeed. I don't like the Federal Reserve and it bothers me that the federal government has control over the money system. However, I'm not going to disregard science to make myself feel better.
This is deflation caused by central bank (due to contraction of credit).
There was a deflation during all 19th century, when gold were money, without any ill consequence. And it was a century of growth due to industrial revolution.
s/spend/invest/. I mean, why would anyone spend money on food? There's no storable value! I can dream up silly situations too, y'know.
Meanwhile, there's a bit more to modern economic theory than a single pithy quote. Like, when deflation actually happens, you get this:
http://en.wikipedia.org/wiki/Deflation#Historical_examples
And this is deflation over a short scale. Bitcoin will experience constant, effectively unstoppable deflation every day after 2020.
>Mainstreamers like the leaves-on-the-fire effect of inflation and also like to overlook the fact that stimlus impairs cyclic corrections
Got some numbers on that? I seem to recall basically no problems occurring during periods when inflation rates are 0-10%.
>and detracts from the role of money as a store of value.
Money isn't supposed to be a store of value; the object of money is to facilitate exchange, not to inhibit it. Investments are a store of value. If you want to store value, invest in the S&P 500.
>"When Something Goes Wrong, It Will Die." I found the logic here non-sequiter. Bitcoin will be tested but from what we know about it at the moment, it looks solid.
SHA256 will -never- be broken, that's for sure!
>If we had a period of high inflation, it's reasonable to expect people would trust finite-supply bitcoins over an unending supply of newly-minted, inflating notes.
The medium that is more easily exchanged will be exchanged. Ever wonder why e-gold never took off, even before governments tried to stop it?
Mind you, I really, really want Bitcoin to succeed. I don't like the Federal Reserve and it bothers me that the federal government has control over the money system. However, I'm not going to disregard science to make myself feel better.