Quote from: thaaanos on January 06, 2014, 01:23:06 PM

Quote from: Adrian-x on January 04, 2014, 06:19:12 PM

Quote from: thaaanos on January 04, 2014, 03:01:31 PM

1. virus <> voluntary
2. fractional reserve is money out of thin air, explain how bitcoin differs
3. just like greece can exit euro, that easy
4. if you follow the story of asic manufacturing you will see what deflation means to a manufacturing process.

1) Bitcoin will most likely always be voluntary. If you volunteer to partake in Bitcoin you transfer wealth to get in, if this accelerates because people benefit it will look similar to a infection, spreading in an unhealthy host.

2) Bitcoin doesn't come out of thin air, they can only be issued. They are only issued to those who agree with the protocol, and then provided work to secure it, Bitcoins are issued as part of the protocol. They are backed by whatever you and I are willing to exchange for them.

3) Bitcoin is voluntary don't like it don't use it. Average citizens don't have that choice with fiat.

4) I don't want to regulate a free market, what I think is good fore everyone is irrelevant, my point is if you save, wealth will erode from the unproductive in society and go to the producers, this is no Dystopian Future. Deflection will help prioritize investment with humanities needs as apposed to what we think we need.

1. Network effect (Cost of not entering the network)
2. You miss the point (So it's not ok for banks to create new coins following protocol rules but it's ok for you to do following bitcoin protocol rules)
3. Network effect/missing the point (cost of exiting the network is bigger than 1)
4. What will producers do when none is willing to ship the goods from producer to consumer?

You all miss the point about what deflation really means. Forget the consumer's view where you just spend your precious coins only when absolutely want/have to. Or the prime producers view. Think about it from the merchants view, who has stocked up goods, or the various processors who still wait materials to arive in their processing pipeline and see that time works against them.
Then you all going to go nagging about how shity preorder, prepay is, and that you still have not get what you bought for, and why on earth vendors don't stock goods in advance, heellloooo because of Deflation maybe?

It never ceases to amuse me that proponents of both anti and pro deflationary models are so convinced they are both right and that the other is stupid! The beauty of the Bitcoin experiment is we may finally get to see which side turned out to have the valid arguments. Centuries of economists arguing theory is about to come to an end as the experiment comes to fruition

Does anyone else find it funny that those convinced that customers will have a reduced incentive to spend deflationary money forget the seller of goods and services have an equally increased incentive to sell. So won't we simply see the price change to reflect this and things carry on as always? Same with stock. The store will have the same disincentive pay for stock that is losing value (relative to ~~depreciating~~ deflating/appreciating* currency) as the supplier will be incentivised to sell his goods? I kinda like that theory but truth is I don't know how it will turn out. Fact is, neither do those who are convinced their arguments are correct!

Edit: Just read bitrider's response. Looks like we're thinking along the same lines re bitcoin as an experiment and absolutism

*Edit: I meant 'deflationary' but had written depreciating - thanks justusranvier for pointing it out