Quote from: Adrian-x on April 12, 2013, 06:04:14 PM

Quote from: Sweft on April 12, 2013, 05:35:00 PM

I just don't think that deflation will satisfy Sweft's Law and I believe thst a competing alt 2-3% inflationary cryptocurrency will eventually outcompete bitcoin for the various reasons i have outlined.

The inflation in the economy is cause for Malinvestment, it is a cost industry pays at the expense of efficiency and environment, the net energy in mineral / energy mining and environmental damage and wasted recourses as a result of the inflation caused Malinvestment, will be much higher than the cost of a fixed currency infrastructure through the Hash rate.

To make your argument you will have to prove why the hash rate will scale relative to number of transactions, the to functions do not scale symmetrically, your assumption that they do is the error that makes your argument.

Gold has been inflating for thousands of years. Your arguments are nonsense. It takes energy to find gold and it takes energy to mine bitcoins. Neither is a cause of mal-malvestment because it is not free to obtain. Mal-investment only occurs when inflating is cheap relative to what is gained by inflating. Inflation of fiat is bad, of gold, bitcoins, copper, uranium, etc not. It is necessary and good.

Please spare me the mundane economic discussion. If you did your due diligence i already addressed the inflationary aspect earlier, and how it relates to other known stores of value such as gold.

I will have to address this in the first post so people don't keep repeating the same thing.