Quote from: Etlase2 on November 29, 2013, 11:58:03 AM

Quote from: deisik on November 29, 2013, 10:18:09 AM

So, this time instead of gold we will have Bitcoin (which will be hoarded as per Gresham's law) and inevitably all kinds of "paper" derivatives actually entering the circulation as a means of exchange. These "papers" allegedly backed up by Bitcoin will in fact leave behind them only inflation, even despite Bitcoin intrinsic deflationary nature...

And welcome back to fiat!

It is the epic idiocy of a "scarce" currency. It incentivizes the SOS with FRB. Besides that and much sooner, there will always be alt-coins inflating the supply regardless.

But any fiat currency with a state behind them will a priori have a competitive edge before them. And they will have to compete with each other at that...