Quote from: Grinder on July 15, 2011, 08:13:17 AM

Quote from: realnowhereman on July 14, 2011, 03:09:08 PM

Logic does not agree with you. Bitcoins aren't deflationary* until 2031. At present they are inflationary (more are being minted every day).

You need to look up what inflation means before you try to contribute to the discussion.

I know well what it means.

Printing money is inflationary, since more money is divided over the same sized economy. Prices therefore go up.

50 bitcoins are created every ten minutes. They are therefore inflationary at present.

Bitcoins will eventually stop being created; their supply will be fixed. They will therefore be neither inflationary or deflationary (ignoring the small quantity that will be lost down the back of virtual sofas). If however we assume a growing economy, that same fixed supply will be divided over a larger economy, which will lead to price deflation; bitcoins will then be deflationary?

So... what exactly is it you think I haven't understood?

The argument being advanced was that bitcoins are now being hoarded because they are deflationary. That is clearly not true, since they aren't deflationary right now.