Quote from: Erdogan on January 25, 2015, 02:10:55 AM

Quote from: twiifm on January 25, 2015, 02:05:24 AM

Quote from: Erdogan on January 25, 2015, 01:46:54 AM

Quote from: twiifm on January 15, 2015, 06:00:10 AM

Quote from: username18333 on January 15, 2015, 05:13:17 AM

The Bitcoin supply has only been inflating at consistently lower rates (e.g., ⅟ₙ₊₁ after 𝑛 blocks when the Bitcoin block reward was fifty bitcoins), so a progressive reduction in spending would seem to be expected under the economic theory.

The theory applies to monetary systems (macro) not some small gambling party.

Krugman was saying Bitcoin could NEVER work as a monetary system because it's designed to be deflationary. I.e. People would hoard instead of spend

Well he is smart, but he is not smart enough to grok that a trade always have two sides, and if the deflationary trait of the money means less buying, then the inflationary money would mean less selling. Why sell now when you can get more money for the same thing next year?

It's macro. Has nothing to do with trading.

Deflationary prices cause people to put off spending. Both consumers and business, so there is danger of deflationary spiral. Rampant inflation is also not good but mild inflation provides enough incentive for spending which stimulate economic activity

Thats absurd, as I just explained. You have to think. You can not just listen to a bunch of people who talk each other up.

Why is it absurd? Taken your logic it should be less buying vs more buying for the buyer. Less buying means less selling vs more buying equal more selling; for the seller.

Your logic is broken