Bitcoin Forum
October 21, 2017, 08:02:30 PM *
News: Latest stable version of Bitcoin Core: 0.15.0.1  [Torrent]. (New!)
 
   Home   Help Search Donate Login Register  
Pages: « 1 2 3 4 [5]  All
  Print  
Author Topic: Serious flaws in Bitcoin monetary policy  (Read 6723 times)
CDBAILEY
Newbie
*
Offline Offline

Activity: 10


View Profile
January 21, 2015, 12:42:17 PM
 #81

It's an excellent monetary policy.  We like it that way.  If you want inflatacoin, you can keep using what your govt doles out and be happy.

The consensus here has been that commerce needs an "inflatacoin". So if you think consumer spending can exist without it you are dreaming.

Toknormal, however makes a very good point in that we shouldnt be comparing BTC with fiat, but instead with gold as a base commodity. So while BTC will always be deflationary, a BitCurrency could be put into circulation that uses BTC as it's base. But this Bitcurrency mustn't deflate with demand, which means there must be a flexible mechanism for inflation that allows the BitCurrency to remain decentralised.


1508616150
Hero Member
*
Offline Offline

Posts: 1508616150

View Profile Personal Message (Offline)

Ignore
1508616150
Reply with quote  #2

1508616150
Report to moderator
1508616150
Hero Member
*
Offline Offline

Posts: 1508616150

View Profile Personal Message (Offline)

Ignore
1508616150
Reply with quote  #2

1508616150
Report to moderator
1508616150
Hero Member
*
Offline Offline

Posts: 1508616150

View Profile Personal Message (Offline)

Ignore
1508616150
Reply with quote  #2

1508616150
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1508616150
Hero Member
*
Offline Offline

Posts: 1508616150

View Profile Personal Message (Offline)

Ignore
1508616150
Reply with quote  #2

1508616150
Report to moderator
1508616150
Hero Member
*
Offline Offline

Posts: 1508616150

View Profile Personal Message (Offline)

Ignore
1508616150
Reply with quote  #2

1508616150
Report to moderator
1508616150
Hero Member
*
Offline Offline

Posts: 1508616150

View Profile Personal Message (Offline)

Ignore
1508616150
Reply with quote  #2

1508616150
Report to moderator
CDBAILEY
Newbie
*
Offline Offline

Activity: 10


View Profile
January 21, 2015, 01:51:26 PM
 #82

Please don't put those words into my mouth, I'm not convinced inflation has any real world benefit and requests for clear examples of that being the case have gone unanswered. Imho it's a dangerous assumption and if it was truly the case we'd have been wiped out by starvation during deflatory periods.

Maybe I should refine.
While commerce can exist in a world of imposed deflation (we have to buy food at least right), a payment mechanism that is deflationary cannot compete where an inflationary one exists**.
So unless BTC creates a market where only it can operate, it has to operate in markets where inflationary fiat exists.
Unless as I say, a BitCurrency can be used for trading that uses BTC as it's base.
What would be really cool is if this BitCurrency can be hardwired to inflate in line with a reliable measure of demand. This would keep the value of this currency stable.
BTC however will grow in value, but it wont matter anymore because people would use BitCurrency rather than fiat.

**The evidence for this is logical as I mentioned at the beginning. People would save BTC and spend using something else**
sardokan
Legendary
*
Offline Offline

Activity: 1400



View Profile
January 21, 2015, 02:01:17 PM
 #83

**The evidence for this is logical as I mentioned at the beginning. People would save BTC and spend using something else**

I fully agree with this, Bitcoin is not designed to manage the daily payment network at global size.

But what would be the caracteristics of this "BTC-derivative"

It interest me, I'm thinking about exactly this part, design a payment protocol, with "good" economical qualities.

I have some ideas, but would like to read more on this topic, to see the options, the eonomical specifications, and eventually technicall implementation of the payment network, reward to use the system...
CDBAILEY
Newbie
*
Offline Offline

Activity: 10


View Profile
January 21, 2015, 02:06:59 PM
 #84

**The evidence for this is logical as I mentioned at the beginning. People would save BTC and spend using something else**

I fully agree with this, Bitcoin is not designed to manage the daily payment network at global size.

But what would be the caracteristics of this "BTC-derivative"

It interest me, I'm thinking about exactly this part, design a payment protocol, with "good" economical qualities.

I have some ideas, but would like to read more on this topic, to see the options, the eonomical specifications, and eventually technicall implementation of the payment network, reward to use the system...

Yep, this is what excites me too.
If someone somewhere invents this BitCurrency in a way that intrinsically tracks a reliable independent measure of demand, so it auto-deflates or inflates as required, we will have a stable currency that cannot be centrally manipulated.
If this happens I'd get as much base commodity (BTC) as I could Smiley
Nicolas Dorier
Hero Member
*****
Offline Offline

Activity: 686


View Profile
January 21, 2015, 02:42:34 PM
 #85

Quote
what happen's if there is a shortage in the supply ?
What does it mean ? Bitcoin is infinitively divisible. As long as a satoshi can buy a cup of coffee there will always be enough BTC for exchanges.
Your problem is : "what if the price of Bitcoin goes up ?"

Savers will win, spender will loose, what is the problem with that ?
"Less consumption" ? Why is it a problem ? People will always buy for eating, sleeping, housing.
"Less investment" ? Why is it a problem ? If you get rich and see that there is a need to fulfill for the market, you will still invest in a solution if you believe the potential is higher than deflation rate.
At least investments will be more profitable, which is what matter at the end of the day. (less mis allocation)

Bitcoin address 15sYbVpRh6dyWycZMwPdxJWD4xbfxReeHe
twiifm
Hero Member
*****
Offline Offline

Activity: 532



View Profile
January 21, 2015, 03:54:33 PM
 #86

**The evidence for this is logical as I mentioned at the beginning. People would save BTC and spend using something else**

I fully agree with this, Bitcoin is not designed to manage the daily payment network at global size.

But what would be the caracteristics of this "BTC-derivative"

It interest me, I'm thinking about exactly this part, design a payment protocol, with "good" economical qualities.

I have some ideas, but would like to read more on this topic, to see the options, the eonomical specifications, and eventually technicall implementation of the payment network, reward to use the system...

Yep, this is what excites me too.
If someone somewhere invents this BitCurrency in a way that intrinsically tracks a reliable independent measure of demand, so it auto-deflates or inflates as required, we will have a stable currency that cannot be centrally manipulated.
If this happens I'd get as much base commodity (BTC) as I could Smiley

What you are proposing are notes.  It's like silver notes except w bitcoins

           ▄▄███████▄▄
        ▄███▀▀
▄▄▄▄    ▀▄
     ▄▄█████████████▄▄  ▀▄
  ▄▀▀██▀           ▀▀██▄▄▀▄
▄▀  ██                 ▀██
  ██       ▀▀█▀▀         █
█▀        █ █ █        ▄█▀▄
▀▄         █ █ █       ▄█  █
 ██         █▄▄▄█      ▄█  ▄▀
  ██▄                ▄█▀  ▄▀
  ▀▄▀██▄▄          ▄█▀  ▄▀
   ▀▄ ▀▀███▄▄▄▄▄▄█████▀▀
     ▀▀▄▄▄▄▄▄▀▀▀▀▀▀▀
.UTRUST.▀████████▄
  ▀███████▄
    ▀██████▄
      ▀██████
       ▀█████
        ▀████▄
         █████
          ▀███
           ███
           ▀██
            ██
             █
             █
●  Download WHITEPAPER  ●
▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ ▼ ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬
facebook      twitter      slack
▀████████▄
  ▀███████▄
    ▀██████▄
      ▀██████
       ▀█████
        ▀████▄
         █████
          ▀███
           ███
           ▀██
            ██
             █
             █
hashman
Hero Member
*****
Offline Offline

Activity: 915



View Profile
January 27, 2015, 08:55:51 AM
 #87

#1

You believe that inelasticity is a problem only because you believe that central bank control of the money supply is a benefit. However, to many people, the central bank is the problem that Bitcoin is trying to eliminate. The idea that an organization can have enough knowledge of the economy in order to control it is preposterous. The central bank only adds another element of instability.

#2

The difficulty self-adjusts to maintain an inflation rate that eventually goes to 0. The idea that "[when] miners halt their progress, [it] will create more inflation because they can mine more BTC now" is simply wrong.

#3

There is too much speculation and too many unsubstantiated conclusions to comment on. Plus, it depends on #2, which has been shown to be incorrect.



+1 odolvlobo
GreenStox
Sr. Member
****
Offline Offline

Activity: 266


CHANGE — First Decentralised Global Crypto Bank


View Profile
January 27, 2015, 02:47:21 PM
 #88

**The evidence for this is logical as I mentioned at the beginning. People would save BTC and spend using something else**

I fully agree with this, Bitcoin is not designed to manage the daily payment network at global size.

But what would be the caracteristics of this "BTC-derivative"

It interest me, I'm thinking about exactly this part, design a payment protocol, with "good" economical qualities.

I have some ideas, but would like to read more on this topic, to see the options, the eonomical specifications, and eventually technicall implementation of the payment network, reward to use the system...

Yep, this is what excites me too.
If someone somewhere invents this BitCurrency in a way that intrinsically tracks a reliable independent measure of demand, so it auto-deflates or inflates as required, we will have a stable currency that cannot be centrally manipulated.
If this happens I'd get as much base commodity (BTC) as I could Smiley

That was what I was proposing in the OP and subsecvent posts.

It's easily trackable though, it just needs an API between major exchanges. If too much if it is sold, then interest rate rises, if too much of it is bought then interest rate lowers.

Now interest rate here means that coins can be burned/deleted or it would offer some kind of return like peercoin.

And the opposite would be to just increase the monetary base.

It would be a longshot, but it can be programmed I think if enough dedicated programmers would come together.

CHANGE FINANCE First Decentralised Global Crypto Bank
[color=#15B5E2 ]LINK TO ICO | LINK TO DISCUSSION
Erdogan
Hero Member
*****
Offline Offline

Activity: 812


View Profile
January 27, 2015, 06:30:28 PM
 #89

**The evidence for this is logical as I mentioned at the beginning. People would save BTC and spend using something else**

I fully agree with this, Bitcoin is not designed to manage the daily payment network at global size.

But what would be the caracteristics of this "BTC-derivative"

It interest me, I'm thinking about exactly this part, design a payment protocol, with "good" economical qualities.

I have some ideas, but would like to read more on this topic, to see the options, the eonomical specifications, and eventually technicall implementation of the payment network, reward to use the system...

Yep, this is what excites me too.
If someone somewhere invents this BitCurrency in a way that intrinsically tracks a reliable independent measure of demand, so it auto-deflates or inflates as required, we will have a stable currency that cannot be centrally manipulated.
If this happens I'd get as much base commodity (BTC) as I could Smiley

That was what I was proposing in the OP and subsecvent posts.

It's easily trackable though, it just needs an API between major exchanges. If too much if it is sold, then interest rate rises, if too much of it is bought then interest rate lowers.

Now interest rate here means that coins can be burned/deleted or it would offer some kind of return like peercoin.

And the opposite would be to just increase the monetary base.

It would be a longshot, but it can be programmed I think if enough dedicated programmers would come together.

I am not sure I would wish to have that kind of function. Lots of reasons:

If and when bitcoin will be world money, it will have a relatively stable value, far more stable than any fiat money's value and even more stable than the value of gold during history.

The fluctuations in value and the floating interest rate (that is also a consequence of its soundness) creates important price signals to the actors in the economy: Shall I spend, save, lend or invest, and when investing, should I go for investments with a quick return, or investment that produce something useful far into the future.

The fluctuations in value will be spread among individuals relative to their current holding of money, thus introducing far less distortions into the production structure compared to the current situation.

The fluctuations in value will be partially predictable, opening a market for evening out short time fluctuations through speculative trade.

The last point is that by connecting the value (through varying the volume) to anything outside the money itself, you centralize it. Someone has to decide what the reference value is, and from time to time adjust the formula as new good types are invented and old good types fall into irrelevance. Just look into how modern mobile phones are valued compared to old, for the purpose of figuring out the consumer price indexes, to see how absurd it can be. As it is designed, bitcoin is not connected to anything, there is therefore nothing in the real world which use can be distorted by its moneyness. Bitcoin it is more pure money than anything that has been before.



Pages: « 1 2 3 4 [5]  All
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!