Topic: Is Bitcoin going to change its inflation algorithm? - page 4. (Read 4949 times)
I chose to use Bitcoin because its algorithm. I would not adopt an inflationary currency unless I had to. Any source that talks about a "deflationary spiral" is automatically discredited.
For Bitcoins to avoid being supplanted by an alternative electronic currency in the future, the supply of Bitcoins must grow in proportion to the total value of transactions undertaken using the system.
^ that statement is false, but it goes back to the fierce debate over whether a "deflationary" currency can really work. I think it can, and would prove superior to an inflationary currency. The number of units of a money in a society matters not, so long as A) there are enough units to permit small purchases easily (eight decimals more than qualifies) and B) the number of units of a money doesn't change suddenly or significantly (Bitcoin's predetermined minting rate solves this issue). Prices adjust to money supply, and so long as money supply is predictable and smooth, then the actual amount of the money matters little.
No chance.
I was bored and reading through this Bitcoin wiki page: https://en.bitcoin.it/wiki/Deflationary_spiral
And the last paragraph really caught my attention:
After seeing all thegold Bitcoin-bugs on this forum, and seeing that the Bitcoin exchanges heavily reflect that people are buying Bitcoins right now mostly as a bet that there will be price deflation, the change described in the above paragraph may be a hard sell 
And the last paragraph really caught my attention:
Quote
There is a simple solution to this problem. For Bitcoins to avoid being supplanted by an alternative electronic currency in the future, the supply of Bitcoins must grow in proportion to the total value of transactions undertaken using the system. This will lead to price stability and will eliminate the benefit that accrues to existing holders of the currency. This is fundamentally necessary to protect the existing value of Bitcoins. If this does not occur then an alternative system that does recognize the risk of deflation and price instability will present itself which will achieve a greater level of acceptance, destroying Bitcoin in the process.
After seeing all the
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