Will deflation cause problems for Bitcoin?

sidhujag

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Quote from: cryptocoinsnews on September 01, 2013, 07:06:26 AM

Will it? Newsfination does not think so, but we are not so sure.

"The way it is structured Bitcoin is most certain to follow the fate of gold that ended up only being a store of value.

This is because of its fixed stock. The success of fiat money is that central banks can create more as the demand for money increases thus making it useful as an exchange mechanism and unit of count. Of course the decree of “legal tender” is a huge advantage too."

Read the post here:
http://www.cryptocoinsnews.com/2013/09/01/deflation-will-not-cause-problems-for-bitcoin/

But what about competitors? Other coins? Failures? Too high prices that will cause it to get extinct?

Troll to drive traffic to site?

knight22

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--------------->¿?

Let me tell you that deflation feel soooo good Grin

CIYAM

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Ian Knowles - CIYAM Lead Developer

For a start Bitcoin hasn't really got to the point of deflation at the moment (still many new bitcoins being mined every day increasing the supply of currency).

We did see a marked changed at the first block reward *halving* (that pushed its price up dramatically) and I expect we'll probably see a similar event when the next halving occurs (still a few years away).

The argument in comparison with gold has a lot of problems because you can't send gold through the internet to anyone else in a matter of minutes and the whole Keynesian model of inflation is clearly starting to have problems of its own as we see currency wars constantly reducing the value of fiat.

Also this has been argued to *death* on this forum - so rather than create *another* topic the same as 1000 others perhaps do some searching instead.

Gabi

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If you want to walk on water, get out of the boat

NO

cryptocoinsnews

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Will it? Newsfination does not think so, but we are not so sure.

"The way it is structured Bitcoin is most certain to follow the fate of gold that ended up only being a store of value.

This is because of its fixed stock. The success of fiat money is that central banks can create more as the demand for money increases thus making it useful as an exchange mechanism and unit of count. Of course the decree of “legal tender” is a huge advantage too."

Read the post here:
http://www.cryptocoinsnews.com/2013/09/01/deflation-will-not-cause-problems-for-bitcoin/

But what about competitors? Other coins? Failures? Too high prices that will cause it to get extinct?

Topic: Will deflation cause problems for Bitcoin? (Read 787 times)