Quote from: virtfund on January 25, 2015, 03:52:13 AM

Quote from: username18333 on January 15, 2015, 06:03:13 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

It inflates initially; however, that inflation decreases to nothing over time (and, in fact, becomes deflation as the rate whereat coins are lost or made unspendable overtakes their production).

But this won't happen for decades. If it turns out the Bitcoin can't handle deflation (the two terms are mixed in your post), by the time it would start inflating, it will already by dead.

Quote from: inflation, Merriam-Webster, Inc. link=http://www.merriam-webster.com/dictionary/a?ref=dictionary&word=inflation#

2 : a continuing rise in the general price level usually attributed to an increase in the volume of money and credit relative to available goods and services

Quote from: deflation, Merriam-Webster, Inc. link=http://www.merriam-webster.com/dictionary/a?ref=dictionary&word=deflation#

2 : a contraction in the volume of available money or credit that results in a general decline in prices

(All red colorization mine.)