Quote from: Puppet on March 26, 2013, 03:54:45 PM

Quote from: memvola on March 26, 2013, 11:34:27 AM

Quote from: Puppet on March 26, 2013, 10:29:50 AM

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If what you have been saying is true, it should cause economic collapse without even having to compete with credit money as currency, its mere existence should be enough.

no, why?

Because you can always buy Bitcoin instead? Isn't that the whole idea?

Like you can buy rembrandts or gold. Or land.

Exactly!!!

Quote from: Puppet on March 26, 2013, 03:54:45 PM

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As long as I can exchange currencies freely, I don't see the difference between owning coins or dollars. No rational person would convert their coins to dollars in order to lose the incentive to save. And if you were willing to spend your dollars, you must be willing to spend the coin equivalent. If Bitcoin does indeed hinder your willingness, it doesn't make any sense to be more willing to spend your already existing dollars, since you can exchange them for bitcoins instead. Does it make sense?

I see what you are saying; but it applies to any store of wealth. Credit money is universally accepted and easily obtainable, also -and crucially- as, well, credit. With pure bitcoins; thats just not going to happen.

Take the example of that Canadian selling his house for bitcoins. Made a nice news story, but think it through. Most people borrow for their first house. Are they going to be borrowing 2K bitcoins? Not bloody likely. So their debt and the price of the house will still be in credit money, no matter if the transaction happens in BTC. And to service their debt they will need to obtain credit money and so nothing really changes. Some people will invest in BTC like others invest in gold or land; they might even do some transactions in it but its not going to be replacing credit money as long people and business need credit which is forever. Its going to be replacing other stores of wealth.

I don't think this answers the question, rather shifts it. You didn't explain why the bank is giving out the loan instead if keeping it as bitcoins.

On one hand, you are saying that since Bitcoin is deflationary, people will not invest with it, which will result in economic collapse. On the other hand, you acknowledge that people, given the chance, will invest in other things than Bitcoin. Both of these can not be true.