Deflation and Bitcoin, the last word on this forum

[LegalEagle]

Here's my view on it:  Hoarding will become much less of an issue as liquidity increases.  When people see that profits can be made by trading between different CryptoCurrencies, they'll start shelling out BitCoins and the price will stabilize.  BitCoins will also become more liquid as it becomes easier to convert them into cash (read, BitCoin backed MasterCard, etc.).

I think the dynamic between BitCoin and other CryptoCurrencies is what holds the key to BitCoin's long-term success.

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[puck2]

Banks hoard. A lot of early miners are acting a bit like banks/bankers IMHO.

[LegalEagle]

Banks hoard. A lot of early miners are acting a bit like banks/bankers IMHO.

Banks don't horde.  Read up on fractional reserve banking for more info.

[JoelKatz]

Banks hoard. A lot of early miners are acting a bit like banks/bankers IMHO.

If banks hoarded, they'd have to charge a storage fee instead of paying interest.

[MysteryMiner]

take away our oxigen and we tend to die. These things are provable, you can run test after test and get the same result.

I would love to see the tests You have done to prove this!

Would You like something that gains value as time goes by or loses value with time? Take away bullshit of capitalistic thinking and it is obvious that money (not only bitcoins) must be deflationary.

[Etlase2]

Would You like something that gains value as time goes by or loses value with time? Take away bullshit of capitalistic thinking and it is obvious that money (not only bitcoins) must be deflationary.

Take away the bullshit of capitalistic thinking and it is obvious that money should be neutral. Anything that gains value can only gain value relative to other things, meaning those other things have lost value compared to it. There's No Such Thing As A Free Lunch.

[MysteryMiner]

Things have changing values over time. Take for example Pentium2-450 processor. Once it was a top of the line, it was best what can be put in your gaming rig. Now it is scrapped and have little use. In future as it is going to be difficult to find such CPU for legacy systems it will again be worth something. Value of things are relative to each other.

And free lunch is good thing. It is better than keeping food in supermarket shelves and throwing it out when the time expires. Everyone must be compensated for work and given what they need. This requires some redesigning of society using guns and propaganda.

[Etlase2]

Value of things are relative to each other.

Wow I have never considered this before, even though I said exactly as much in my post. But you have blown my mind, nonethless.

And free lunch is good thing. It is better than keeping food in supermarket shelves and throwing it out when the time expires.

Someone posting on a bitcoin forum having no concept of social cost and associates "free lunch" with food? Color me surprised.

[DoomDumas]

Even if bitcoin will deflate, bitcoins are still being added to the supply at a fast rate until about 2017 at least. So if you don't want to use a deflationary currency, just sell all your bitcoins in 2017 before deflation kicks into effect. It's not that difficult. 

+1

Agreed !   bitcoins are still "unknown" by the mass, and by 2017, I call them "Easy mined coin" 

Inflation or deflation ?   I Vote Deflation

[mdude77]

Banks hoard. A lot of early miners are acting a bit like banks/bankers IMHO.

Banks don't horde.  Read up on fractional reserve banking for more info.

They don't usually horde.  But they are now.  That's why inflation isn't out of control.  Yet.

M

[JoelKatz]

They don't usually horde.  But they are now.  That's why inflation isn't out of control.  Yet.

We are indeed living in strange times.
http://en.wikipedia.org/wiki/Zero_interest-rate_policy

[molecular]

Deflation has practical consequences. Who would invest on "real world" companies on GLBSE if You can expect more profits from the rising value of the BTC.

This is one of the many benefits of Bitcoin. You don't need to invest to maintain your wealth, you invest for profits. The result is businesses that fulfill society's needs will profit and those that don't fail. (People's needs aren't going away they just won't need as much c#@p.)

The net benefit is people planet and profit and now we have a self regulating system, and a production driven economy, the economic benefits of the throw away society start eroding.

A fixed money supply has far reaching environmental benefits too.

this can't be +1ed enough.

[paraipan]

Deflation has practical consequences. Who would invest on "real world" companies on GLBSE if You can expect more profits from the rising value of the BTC.

This is one of the many benefits of Bitcoin. You don't need to invest to maintain your wealth, you invest for profits. The result is businesses that fulfill society's needs will profit and those that don't fail. (People's needs aren't going away they just won't need as much c#@p.)

The net benefit is people planet and profit and now we have a self regulating system, and a production driven economy, the economic benefits of the throw away society start eroding.

A fixed money supply has far reaching environmental benefits too.

this can't be +1ed enough.

+1 The TL;DR of Bitcoin as a whole

[molecular]

hey guys, just caught up to about 7 pages of this awesome thread.

@Adrian-X: thanks for chipping in your wonderful arguments.

@tytus: dude,

=> What are the proposals for maintaining the value of BTC ?

Supply and demand.

In other words the value will be random. It will follow chaotic movements :-)

I believe that gold is not a good currency because in fact it actually fluctuates too much (nobody would sign long term contracts in gold because it's value in 5 years is completely unpredictable). I feel that most members of the forum criticize central banks as regulators of money supply, but do we have a better way to control the value of any asset.

Why do you insist that value of assets/money has to be controlled? How do you even measure the value of a bitcoin? In friggin' USD???

I honestly don't understand, please explain.

[molecular]

Banks hoard. A lot of early miners are acting a bit like banks/bankers IMHO.

Banks don't horde.  Read up on fractional reserve banking for more info.

The fed hoards unlimited amounts of unprinted dollars.

[mdude77]

Banks hoard. A lot of early miners are acting a bit like banks/bankers IMHO.

Banks don't horde.  Read up on fractional reserve banking for more info.

The fed hoards unlimited amounts of unprinted dollars.

lol



M

[Stellaartois]

Can anyone direct me to double spend

[Stellaartois]

Also am I able to claim double spend back

[Adrian-x]

Can anyone direct me to double spend

You came to the right place.
http://lmgtfy.com/?q=double+spend

[AtheistAKASaneBrain]

It doesn't matter if huge whales hoard their coins, the Bitcoin economy would still be able to run under a couple coins being traded, since it's so divisible it doens't matter. It would just mean the price of a single Bitcoin is sky high. This is a perfectly self-regulated system.