Quote from: vulgata on August 09, 2011, 06:14:31 PM

Quote from: TraderTimm on August 09, 2011, 04:22:35 PM

3) Every block that is mined reduces the available supply, which in turn provides higher value. (For bitcoin itself, not compared to fiat currencies.)

I don't get this one; doesn't each block introduce 50 new BTC every 10 minutes?

I don't think that it's a correct statement at all. Every block that is mined INCREASES the available supply on the marketplace, which in turn provides LESS value. Of course as the above poster noted, this is a temporary phenomenon. Eventually BTC will be a deflationary currency, once the rate of production (from mining) is lower than the rate of destruction (idiots losing their wallet.dat or other losses). At that point, it will begin to realize the benefits of not being like a fiat currency (increases in value). People are getting a little ahead of themselves claiming bitcoins are currently beneficial to fiat currency with regards to dilution, when they're both currently suffering from the same symptoms (printing dollars/mining bitcoins). Of course, the symptoms of bitcoin are hidden because of the growth rate of adoption and the overall awareness that this dilution is temporary.