2
whitslackI do not understand how You expected inflation in the first year of the currency?
inflation = current(monetary base) / 1_year_ago(monetary_base, right?
Eventually that little line on your graph will level out. Once all BTC are mined and in the hands of bearers, inflation will be impossible because the amount of BTC is FINITE!
Exactly.
Inflation (total coin# over time) was only written into bitcoin to attract miners in order to establish the network. If the network infrastructure were already in place then bitcoin could have been seeded with 21M coins along with the genesis block and inflation could be zero from T0.
Of course to establish this network prior to genesis block would have required tremendous capital into an unknown system. A self growing system is far sweeter. Inflation of coin was written in mainly for this reason.
Bitcoin in many ways is a computer virus that pervades beyond software, beyond hardware and into wetware (brains). It is a very good symbiotic virus that will increase our happiness. It is a glimpse of the singularity, the "perfect" system.
No matter what the reasons were for this launch.
But the fact is - the current bitkoin, this hyper-inflation currency (more than 30% per year up to 2013, 10% now - it's very much in comparison to fiat currencies).
And whether inflationary bitkoin successfully transformed into a deflationary, or die in the process - a topic for much discussion.
Sorry for my English, translated by Google translate.