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.
Aren't the digital coin-miners already a near-perfect mirror image of central banks? Nearly all of them currently adhere to a gold-like standard called Bitcoin. Instead of printing soft-money as fast as they can, they're all digging for a scarce common resource as fast as they can. There are a few plucky hold-outs -- let's call them the "Axis of Evil" -- who are brazenly trying to subvert the Bitcoin monetary system by making fiats that they will dig for something else instead.
Not quite. If the miners could only get their block of currency by making a loan and waiting for the interest payments, your analogy would be better.