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Re: delete
by
JohnDoe
on 31/08/2011, 18:14:20 UTC
I believe both Bitcoin and its clones will fail to reach mainstream acceptance because they have a serious economic flaw, which is that deflation severely hurts investment and borrowing. I think a deflationary currency with demurrage will have better luck at stimulating economic growth.
There is no such thing as a deflationary crypto-currency, anyone can create more of them.  I don't see people going for a currency with demurrage realistically, I can see the deer in the headlights look already trying to explain that to the average person.

Creating clones of a currency doesn't make the original non-deflationary as they are not part of the same network.

The effect of demurrage on people's purchasing power is basically the same as inflation so I don't see why they wouldn't be able to accept it. Currencies with demurrage have already been successfully introduced by the way.