Quote from: whitslack on December 28, 2012, 04:20:35 PM

Quote from: hgmichna on December 28, 2012, 11:56:45 AM

Doesn't matter much. Bitcoin is already deflationary in the sense that their price is rising.

The reason is that, while the money supply inflates, demand inflates even more. There is inflation, but there is no effective inflation. The price behaves deflationary, unlike that of the dollar or the euro, which is truly inflationary.

I must beg to differ. Prices (of goods) may be holding steady or even going down, and yet inflation may still be cheating people out of purchasing power. Inflation is never good (except for debtors), even if prices are falling. Inflation means prices are not falling as quickly as they would be if inflation were not present, meaning your purchasing power is still being stolen. In the case of Bitcoin, we know the inflation well in advance, and we all agree to it when we get into Bitcoin, so it's not insidious or evil like the inflation perpetrated by the central banks, but it is still significant and not negligible.

I cannot follow that argument, for more than one reason. I will mention only one here: The money supply inflation of bitcoin is known precisely in advance, therefore everybody knows exactly what to expect, and therefore nobody is being cheated.