Post
Topic
Board Economics
Re: Current Bitcoin economic model is unsustainable
by
Suggester
on 20/02/2010, 03:56:26 UTC
I use a formula to calculate my exchange rate which is described on my exchange rate page. When I generate my first block of ฿25 rather than ฿50, I can simply change my formula to multiply bitcoins generated by two which will turn that ฿25 into ฿50 within my formula. Bitcoins are worth how much I say they are worth. If tomorrow I say they're all worth half as much as today then it would be so. Go ahead and create your own exchange service using your own formula to value bitcoins and you can have just as much control over the worth of bitcoins.
OMG. The moment you do that you'll run out of coins immediately because buying them from you would cost only half as much as generating them!

I absolutely disagree that the current model is unsustainable and I absolutely disagree that people will not spend their bitcoins.
Fine. But until someone answers the numerous doubts I've raised in here, I (and anyone with basic economics background) won't believe Bitcoin's current model has a promising future.

If I had my druthers, the amount of bitcoins awarded would grow at the same rate as worldwide human population growth
But I already explained why that was irrelevant. Oh well... nevermind.