Without a mechanism for responding to increased market demand by creating more currency, there is a fatal flaw.
This is what I don't understand about those who "don't understand" bitcoin. Firstly, bitcoin is almost infinitely divisible (for the number of people on the planet at least)
Secondly, creating more currency in response to market demand is the fatal flaw of fiat! Bitcoin seeks to remedy this.
Yea I think he tries to justify inflation deflation forces is todays economy by being able to battle those forces through expansion/contraction like PPC coin kinda... and I kinda agree a lil bit that a small amount of inflation is good... but being divisible may or maynot work in that favour as a bitcoin is still a bitcoin is still a bitcoin regardless of divisibility.
There are several coins that have a stable expansion of supply for example DeVCoin has a steady expansion that will never change.
In several cases it is a benefit to have a known expansion rather than dynamic expansion like PPC because this creates incentive to skew the expansion controlling mechanism. By knowing that no matter what its going to have x amount of more coins, that seems sufficient to me, as a stable user base growth will lead to a stable currency exchange rate. Seems as the critics are hard on bitcoin because of the inherent structure breeding volatility in the rate..
