Re: Bitcoin major fail - doesn't allow credit creation (aka deflationary currency)

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.

I'm sorry, how do you identify the organization's blocks? By the fees they charge? That would work if you imposed a mandatory fee system rather than a market-based fee. A mandatory fee is a great idea. You have to do it now, though. You can't wait for the "attack" to happen and then try to fight the government.

Only idealistic libertarians will fight the government. The 99% will reject invalid libertarian blocks.

99% would mine blocks according to some rules that charge demurrage? I doubt it.