It's a real shame, too. Take a look at this account:
PMmesexycoinsPost history:
https://bitcointalk.org/index.php?action=profile;u=1072406;sa=showPosts;start=0But before they decided to go on this tirade of the giveaway spam, they had posts like this:
They don't have the means to trade for it and are missing much of the infrastructure to make it work.
Money's worth isn't just about people recognizing it as such, there's the very real resources, manufacturing and services provided that are limited. Money ultimately facilitates the trade of these elements, the distribution of them.
Printing more money in itself is not necessarily bad, but too much can definitely be. Now, the problem with cryptos is that who's gonna stop people from replicating them. Not as limited as you thought now, eh? Also, one should mind that if it were just one of them it could still add to the inflation due to it not existing in a vacuum, they are attached to an existing system. Essentially also printing money as they gain value.
It's not really much of a problem if, say, diamonds cost a billion times more or whatever, because they don't have the liquid potential that crypto-currencies do. If the flood gates are opened they could bring some crazy hyperinflation that could be disastrous. See, cryptos, if mainstream, compete with currencies that stood alone within their national territories, you have effectively increased the amount of money, and probably slowed down productivity due to all the speculation. That means as a whole there would be more money to be traded against the same or less stuff than there was before.
One should remember that bitcoins and the other top alts, same as much of the wealth of the planet, is in very few people's hands. Great minds behind it, but I wonder if this was the right way to implement it and distribute it.
Without governments and laws, everyone would be fending for themselves, and unless you are a big fish in the vast ocean it might not be as great as you think. Even the concept of private property, never mind money being worth anything relies on the pacification brought by laws and enforcement. Or it would be the few elites and their private armies running the show and most everyone else as serfs. And sure, there's quite a bit of difference between one country's leadership and another.
It's pretty bad for most on this planet now, but it could certainly get much worse. To help people help themselves education is the way to go. Got to be capable of producing things, for there to be things to trade. The real wealth is, again, in the goods and services that someone needs to provide.
Let's hope I'm wrong, cause I'm a bit scared for the future of us all.
It does surprise how people miss that alternate currency gaining valuation has this effect as well. Merchandise cost is adjusted to total currency flowing towards it. These coins add to the dollar, and else, that's already in circulation.
The reason this looming inflation beast still lies in wait is not only due to its current lack of circulation, but also the market valuation for the whole not yet being terribly large. For now.
Currency of any flavor being added to a world with other currency can only add to inflation. What can cause deflation, instead, is having an excess supply of useful products.
Having a bit of inflation might even be for the best, but we are talking about going from somewhat high inflation into monstrous inflation here. The adjustments will be paid by those that least can afford it.
