Topic: Isn't it a bad thing to never have more than 21 million coins? - page 3. (Read 3453 times)
September 22, 2011, 06:13:45 PM
Isn't it possible to add some more bitcoins to the network in the far future? Imagine what will happen in a few hundred years. People "lose" some bitcoins every now and then and they will never get these bitcoins back. So in several hundred years, we may have a problem to use bitcoins, because there aren't enough in the network.
September 22, 2011, 11:32:34 AM
I would think it would be a bad thing. My thoughts are that once all the bitcoins are distributed the system would see some stagnation. If the user base is large enough to keep transactions going then this wouldn't be a problem but maybe there will be a retooling of the whole concept by that point. Some type of bitcoin v2.
September 20, 2011, 10:48:37 AM
I don't see deflation as a bad thing. It will strengthen the currency against weakening fiat currencies over time. This provides a reason to buy into Bitcoin over other currencies; as a store of value. Those who hold Bitcoins will slowly gain more purchasing power over time. I do not see hoarding as a becoming a problem. After all, currency is useless if you never spend anything, so there is no reason to hoard forever. Healthy savings is beneficial. Look at the USA with our massive debt problems. On the other hand, China, has a super heated economy, and a huge savings rate.
September 20, 2011, 03:27:06 AM
Its more like gold than traditional currency. Whether thats good or bad for a currency depends on your economic views. Keynesians think no, goldbugs think yes.
September 20, 2011, 03:24:37 AM
My opinion is yes.
Ultimately when all the bitcoins are created, a deflation will occur. Deflation creates an incentive to reduce the number of financial transactions. Holders of the currency have an incentive to hoard. This will lead to sub-optimal use of the productive capacity of the bitcoin economy. Eventually, people will be forced to sell their productive assets to survive and consequently cause a misalignment of productive capacity within the Bitcoin Community.
However, that point is a long-time away. I also think that their will be a bitcoin credit boom, which will have cause inflation, and economic growth in the future.
Just my 2 cents.
Ultimately when all the bitcoins are created, a deflation will occur. Deflation creates an incentive to reduce the number of financial transactions. Holders of the currency have an incentive to hoard. This will lead to sub-optimal use of the productive capacity of the bitcoin economy. Eventually, people will be forced to sell their productive assets to survive and consequently cause a misalignment of productive capacity within the Bitcoin Community.
However, that point is a long-time away. I also think that their will be a bitcoin credit boom, which will have cause inflation, and economic growth in the future.
Just my 2 cents.
September 20, 2011, 03:07:25 AM
What if it's super popular and such? I know it can be divided, and a single Satoshi is 10^-8, but capping out make it seem more like real estate to me than currency.
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