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Topic: Deflation (Read 1358 times)
oozzzzz
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Deflation
April 15, 2011, 09:15:41 AM
#1
As I understood there will be only 21m of bitcoins in total. And as I can see it's not easy to mine new coins already so there will be some slow down of emission in nearest future. This can cause the inflation and coins rates growing already. How to operate with currency that constantly grows in long term contracts?
caveden
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Re: Deflation
April 15, 2011, 09:27:50 AM
#2
Consider the currency valuation in your contracts?
Of course it's not easy to do it right now with bitcoins, but that's because the bitcoin economy is very small and thus very instable... but once it gets more stable, this shouldn't be a problem.
oozzzzz
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Re: Deflation
April 15, 2011, 09:36:02 AM
#3
I think it's never be stable as emission is harder and harder in future and will be stoped eventually.
caveden
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Re: Deflation
April 15, 2011, 09:46:58 AM
#4
By stable I mean the value doesn't swing strongly in a short period of time, not that the value will not change at all. Of course it will change, but as long as it could be more or less predictable how much it should change, it should be manageable.
oozzzzz
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Re: Deflation
April 15, 2011, 09:59:08 AM
#5
My main question concerns the possibility to pay salaries using bitcoins and using them in job contracts. Now and in future I probably can not do that because in the end of one-year contract I will have to pay an employee significantly more than today.
caveden
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Re: Deflation
April 15, 2011, 10:54:42 AM
#6
Your contract could specify salaries reductions based on some deflation index.
Just watch out for the laws you live under... in many countries, paying salaries with bitcoins is indeed not possible, not because of bitcoins' economics, but due to labor laws.
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