Quote from: Guy Inkognito on June 03, 2011, 10:14:42 AM

Quote from: bitboy on June 03, 2011, 09:39:36 AM

If you take the total amount of bitcoin in unit of Satoshi (that's 2,100,000,000,000,000) and devide by the worldwide population (6,775,235,700) based on the 2009 data from the world bank, each one of us will get 309,952.3164928417 Satoshis. More than enough, no?

Hi, The problems is not amount, but growth. If you don't allow growth AT all after some point, the currency is deflationary, meaning people start to hoard the money, because they know that there will be more goods available tomorrow but the same amount of money.
Money get worth more - what we are seeing now with bitcoins.

Ideally, the amount should be fully flexible and based on economic activity: if Bitcoins take over the world, the amount should be allowed to grow in order to make the VALUE of the currency STABLE versus the ECONOMIC ACTIVITY / GOODS AVAILABLE it constitutes.
This is now very easy to measure with bitcoins due to the computing power in the network.

Also, if the activity slows (which is highly unlikely but possible), the amount of money should be REDUCED. They could withdraw from every client the tiniest fraction on a predetermined and announced date. Basically the currency/money should always be flexible with the economy, which moves in cycles.

Fiat currently is inflationary: they print MORE than the economy grows. Thus it LOSES value. They are doing exactly the wrong thing, but they need to do it, because interest needs to be paid. If you have an interest free monetery system, you can REDUCE the amount of moeny without creating a crisis.

I was thinking about the same thing the other day. I don't know that much about economics to say for sure whether bitcoin as deflationary as it is is the best or that something less so would be better. I was thinking that if BitCoin did cause problems in the long run, its replacement might have an algorithm that adjusts creation of bitcoin due to mining according to the amount of economic activity (transactions), sorta like how difficulty adjusts right now.