Post
Topic
Board Economics
Re: Why Bitcoin is ultimately doomed to fail (not today or tomorrow)
by
deisik
on 12/12/2013, 16:04:43 UTC
Quote
The gold standard acts as a limit on economic growth. "As an economy's productive capacity grows, then so should its money supply. Because a gold standard requires that money be backed in the metal, then the scarcity of the metal constrains the ability of the economy to produce more capital and grow."[64]

This statement is itself not true.  Bitcoin itself simply becomes more valuable, and everyone moves on with their day.

Yes, I consider this as a central problem for Bitcoin and gold standard. If "Bitcoin itself simply becomes more valuable", everything else becomes not that simple for producers in the first place, and you won't get away with it by just saying "and everyone moves on with their day". It has already been proven so many times that if you claim otherwise, it can be considered that you don't actually understand the issue at hand...