Quote from: Suggester on June 04, 2011, 01:18:34 AM

And I explained that what I "expected" wasn't a lack of transactions. It's about the purpose of those transactions. And even if all those transactions were genuinely for consumption (which is impossible because consumption doesn't increase the price ten-fold in a month), why isn't a stable currency a better idea anyway?

Sure it can. With a deflationary currency the supply is fixed so only the demand defines price. Whether people buy $300 worth of BTC to hold on it or to purchase a ps3 from a BTC vendor, it's still $300 worth of value entering the economy.

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No, but they won't buy those things using a deflationary currency. They will simply use another medium while saving the deflationary currency under the mattress for a rainy day (or until they feel the price might drop soon and exit the market safely, only to sell the money to a new hoarder)

If BTC turns into a currency, what will be the need to hold inflationary fiat? Anyway you look at it, fiat will lose value, so you're better off using that BTC directly. You're presenting this as if spending BTC only holds disadvantages. Holding fiat is far worse, so logically you'll end up using that BTC, whether you buy into the USD or directly spend it at BTC vendors.

If BTC remains a store of value, then it is the exact same as buying into some gold. Are you saying that's bad for the economy too?

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And I explained that what I "expected" wasn't a lack of transactions. It's about the purpose of those transactions. And even if all those transactions were genuinely for consumption (which is impossible because consumption doesn't increase the price ten-fold in a month), why isn't a stable currency a better idea anyway?

If the MtGox data can't make my point, then gold surely will. Your model is that hoarders will hoards, selling under no circumstances unless force to by an adverse conjecture of events. Gold is the actual hoarder haven, yet it's easy to get into that market. So apparently hoarders aren't hoarding as hard as you wish them to.

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Because the "natural" market levels is based on perpetual built-in deflation. That's a natural pyramid scheme not a natural stable medium of exchange.

Pyramid schemes require fraud, there is none here. The expectation that price will rise and you'll make a profit off of your hoard is reached by your own logic, not someone trying to pawn you some worthless goods pretending you'll get to sell them for 10 times the value. The fact that you think people hoard BTC proves that you expect the rise in value, so there's no fraud here.

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Elaborate please.

Not in this thread. This is off topic. Make a thread about it, present the merits of your system, and I'll offer you my arguments against it in return.