Post
Topic
Board Economics
Re: Bitcoin major fail - doesn't allow credit creation (aka deflationary currency)
by
molecular
on 19/11/2012, 13:21:33 UTC
Bitcoin is completely compatible with liberal central bank directed credit creation. The bank just needs to have 51% of hashing power. Then it can charge demurrage and give the demurrage fees to banks to lend out.

If someone or some organization decided tomorrow to impose demurrage via a 51% attack, the response would be:
1. What is demurrage?
2. How could I calculate it even if I cared?
3. Just wait until a miner from the remaining pools mined a block with your .001 btc fee.


No, common misunderstanding. If the organization has 51%, mining must be authorized by the organization or it cannot occur.

but if the organization imposes certain rules (demurrage in this case), the 49% can just hard-fork by rejecting blocks identified as being mined be that organization.