Quote from: MPOE-PR on May 04, 2013, 06:55:29 PM

Quote from: Spendulus on May 04, 2013, 06:27:54 PM

Quote from: Birdy on May 04, 2013, 04:46:50 PM

Atm Bitcoin is inflationary due to the new coins mined.
But in the long run Bitcoin is deflationary by the amount of coins lost.

The article uses, as do you, a meaning of inflationary based on percent new coins added, but that isn't correct. Inflation could also occur with fewer coins, with higher monetary velocity, or it could NOT OCCUR, with more coins, but with usage increasing at a similar rate as new coins.

There is also the "latent inflation", which is existent but yet to be realized in price levels on the street, and this is typically seen when governments start printing money like crazy. I suppose there could be some similar thing with bitcoins.

This is a sizable quantity of words which do not seem to carry any sort of meaning. If you'd be kind enough to proceed systematically from some sort of commonly known point it'd probably help.

Well, the commonly known points consist of the thousands of year old abstractions understood from observations .... here's a first cut.

http://en.wikipedia.org/wiki/Quantity_theory_of_money

Secondly, we can observe these phenomena and comment on them vis a vis Weiner Republic, US 1970s inflation, Spain 1950s, more recently, Argentina.

The simple generalizations I noted are all reasonable.

Oh, regarding "good analogy"...I guess what I was trying to say is that a "good analogy" might be one that was understandable by a stupid person, or something like that...not something highly refined and subtle. There's an opposite argument, of the following type (which I sort of like):

"Did you hear the joke about the airplane?"

"Nope."

"Oh...I guess it flew right over your head."

And going down this road, we can in fact generate entire strata of dialects full of innuendo, jokes and insults which people right in the conversation do not understand, Cockney slang for example.