I think most of us here can agree that the concept behind a currency such as Bitcoin is brilliant, but it is not without its flaws.
One that has me particularly concerned is the deflationary spiral
, and I have a question related to it. Are lost Bitcoins, either destroyed or just never used, ever recoverable by the market?
This is obviously countered by the inflation period in which Bitcoins are being generated en masse, but it raises some concerns in me about the long term viability of Bitcoin as a currency. When the 21 million maximum is hit, the Bitcoins "removed" from circulation can only help the deflation spiral. Shouldn't there be some sort of system that adds currency not used in, say, 2-3 years, back to the market, though mining?