Quote from: JimiQ84 on July 04, 2013, 08:08:17 PM

Quote from: Vycid on July 04, 2013, 07:50:57 PM

Quote from: JimiQ84 on July 04, 2013, 07:35:09 PM

Quote from: Vycid on July 04, 2013, 07:31:52 PM

Quote from: JimiQ84 on July 04, 2013, 07:21:32 PM

Quote from: huhai0978 on July 04, 2013, 07:13:02 PM

4) Satoshi is great. He solved one important technical problem. But, trust me, he doesn't know how money works. Why should we encourage hoarding? Why should we punish those who is spending? We, as bitcoiners, would someday come to a conclusion that let the total number of bitcoins increases 3% every year and make the mining a sustainable career.

Because BTC is opposite to FIAT money and that's exactly what FIAT is NOT doing - it's punishing hoarding and rewarding spending. Satoshi wanted something different.

This is a terrible argument, sorry. A kneejerk "we should do the opposite" because "fiat is bad, mmkay" is not compelling. Even if you took as axiom that fiat is bad, you're still on the hook for demonstrating why punishing hoarding and rewarding spending is a bad thing.

Economists - yes, including the Austrian ones like Hayek and von Mises - agree that you need to penalize hoarding and encourage spending to boost the velocity of money and create a healthy economy. This is the primary reason why deflation is viewed more negatively than inflation.

It is clear that Satoshi wasn't an economist.

Whoa, whoa there. You mean economist like Keynes agree that you need encourage spending to create a healthy economy. And that's just plain wrong (on which Hayek and von Mises agreed).

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

Nobel laureate Friedrich Hayek, an Austrian Economist, stated of deflation during the Great Depression:
I agree with Milton Friedman that once the Crash had occurred, the Federal Reserve System pursued a silly deflationary policy. I am not only against inflation but I am also against deflation. So, once again, a badly programmed monetary policy prolonged the depression.
Interview with Diego Pizano (1979)[23]

...

They are therefore rewarded by holding money. This "hoarding" behavior is seen as undesirable by most economists, as Hayek points out:
It is agreed that hoarding money, whether in cash or in idle balances, is deflationary in its effects. No one thinks that deflation is in itself desirable.[24]

Once Crash occured deflationary policy was wrong. High inflation and high deflation are wrong. Right, I agree. But Bitcoin's programmed deflation after adopton is lower (created only by lost coins, otherwise is BTC inflation/deflation neutral) than current 3-5% annual US dollar inflation. Bitcoin wins.

And if you think that Bitcoin's deflationary nature is bad than I don't see a point of you staying invested in bitcoin business.

This is a common misconception: deflation is more than how much money is being created. If your economy is growing 3% every year, that demands a 3% larger money base every year; so you should be creating 3% more currency to to maintain the same price level.

In other words: in a healthy economy, 0% inflation means printing money (or, the more modern method: the central bank buys bonds).

And Bitcoin will see much faster than 3% growth as new users come on board. It will probably be strongly deflationary. Already, people selling goods denominated in bitcoins peg them to the USD/BTC exchange rate. www.bitcoinstore.com is an example.