2013-03-30 Volkskrant (Dutch newspaper): Bitcoins doesn't know inflation

[simonvrouwe]

Today an 2p article in (paper) newspaper Volkskrant (in Dutch) in Netherlands, I have a scanned copy but don't now how to upload or if that's allowed (copyright).

Here a short translation of the headers:
Title: Bitcoin doesn't know inflation
Header: Money printing banks undermine trust in the Euro, Dollar and Yen. The financial world already discovered Bitcoin. Ordinary citizens follow.

Quote: "a 50Euro note is worth 50Euro because everybody groundlessly assume so. Without that, they are just worthless pieces of paper." Then the article continues on central banks money printing undermining trust in the fiat currencies. Then some about gold's disadvantages like low liquidity and requiring a safe (fault) for storage. Quote: "for those seeking inflation protection but feel afraid for gold's disadvantages, they can consider investing in Bitcoin"
Some other keywords in article: 21million cap, decentralized, controlled inflation, no account subscription. Pretty good explanation of Bitcoin, but then at the end, quote: "Bitcoin's anonymity and in-dependency make it very attractive for criminals. Many drug dealers, weapon dealers and gambling sites make use of Bitcoin"

What strikes me about this article are the notions of the monetary system and fiat (paper) currencies. You hardly ever read anything about that in Dutch newspapers, only in boringly thick books of Austrian economics.

[anaikh]

YEs, bitcoin may be NOT inflationable.
But it may be deflation --- when more and more people jump into the pool the price will be higher and higher as a result and bitcoin holders will not sell there bitcoins and it will cause the bitcoins in circulation become fewer and fewer, so the bitcoin exchange rate will become higher and higher and results into a vicious circle

[simonvrouwe]

Well some people are selling their bitcoins on mtGox (when price is high enough or when they need money whatever), and I bought a knife with Bitcoin a few days ago at a Dutch web shop (HQknives.nl). As soon as more shops accept Bitcoin I will spend more of them. So I guess the vicious circle has an end somewhere.

[anaikh]

Hope it works. But I am still a little pessimistic: the vicious cycle is moving on as far as I can see.... If the coin-generating is based on normal distribution rather than linear decling I think it will be much better