The problem with compounding interest and the problem with deflation are essentially the same. Both choke off money velocity. The only excuse I've heard is that "It's actually good people don't spend their money." This stands in contrast to every economic theory, even Austrian Economics. Only "Bitcoin Economists" have come to this strange conclusion.
EM,
the problem with the hoarding theory is that everyone disagrees with when to jump off the train. you, for instance, probably sold @ $2 after it bottomed @ $1.96 on the way back up.
and it certainly isn't stopping everyone from buying new pc's.
The reason why everybody still buys PCs are because they provide value over the transistors their chips are made of. No matter how far down moores law, it's still a PC.
This is actually an interesting comparison. Bitcoin could have been fixing the money supply to the total amount of processing power dedicated to it, or better the logarithm of it, this would have resulted in a sound limit enforced by physical limitations rather than the arbitrary 4 year halving period.
As for me "giving up", lets see if Bitcoin hasn't been superseded with a superior design within a decade.
