Bitcoin is only a speculation and bastion of criminal activity to the masses, and that rightfully scares them. The greater fools (i.e. the majority of the population) only buy at the top of a speculation. So they won't be buying Bitcoin soon (unless Bitcoin's price has peaked in a massive bubble already, which it hasn't yet).
Armstrong points out that people are intuitively making decisions and acting on them. I find their interest in Bitcoin to be along those lines; they can feel the environment shifting and have begun to respond accordingly.
BitNet is initially inflationary while onboarding (hopefully billions of people). When onboarding becomes mature and transactions overtake onboarding, then BitNet becomes deflationary due to burning transaction fees with a perpetually divisible unit (i.e. the satoshi in BitNet gets smaller and smaller as time goes by but never reaching 0, i.e. Zeno's paradox of the hare and the tortoise, but not to be conflated with the
Zeno's tarpit). Note that doesn't mean the value of your hodlings get smaller. Your hodlings don't change until you transfer them and then you burn a tiny transaction fee (very tiny!). Actually
hodlings will increase due to the interest rate you will be paid for hodling.
Being deflationary, there shouldn't be any need to provide an interest return. Burned transaction fees should reduce available supply such that unit value increases, no?
Continuing on that notion and Nash's Ideal Money, it may be possible to manage the inflation/deflation tension for stability by monitoring velocity versus supply. For instance, assume a total momentary supply of 1 million units, 30% of that supply having been transferred during a given period of time, and 20% as the target desired.
Lower velocity should result in less new issuance, higher velocity with increased issuance. In the example, issuance would be increased until velocity is back in line. By targeting velocity, all information would be available from within the system rather than relying on unit value or other external factors.
I'm sure there are details I've missed. Thoughts?
One question regarding Bitnet: this may have been stated earlier but I must have missed it in that case - what language is intended to be used primarily for app creation? Javascript, or maybe the language you're working on?