Quote from: Puppet on March 25, 2013, 05:26:41 PM

Quote from: memvola on March 25, 2013, 05:11:28 PM

Quote from: Puppet on March 25, 2013, 03:01:09 PM

Buying land is an investment and like any other investment it can turn out good or bad.

Almost exactly like Bitcoin...

If you look at it as an investment today, yeah maybe; though much, much higher risk and potential reward. Land is probably about as stable as an investment as you can get while bitcoin is on the other end of the scale.

But thats not my point. I dont have a problem with a risky or potentially lucrative investment; Im saying you cant use it as a universal currency to replace credit money. No one is making that claim for land or gold either.
It just wont work if its value keeps going up. Among all other problems inherent to a deflationary currency, no one will be able to afford a loan and no one will be willing to give one.

This is not a problem inherent to deflationary currencies. It's also true within inflationary currency systems when the inflation rate is too high. That's the real issue; not that Bitcoin is deflationary (it's not really, and won't be until at least 2100), the problem is that the rate of change of the exchange value is too high for such long term contracts to be sensible. The current and past instablility is a consequence of Bitcoin's adoption rate, not any particular flaw in the system, and certainly not Bitcoin's "deflationary" nature. It's simply not a mature economic system, yet.