Quote from: becoin on September 06, 2011, 07:36:11 AM

Quote from: steelhouse on September 06, 2011, 07:05:34 AM

However, in cryptocurrencies their will be some deflation. From 1840-1914 there was basically deflation overall.

1. From 1840-1914 there were no cryptocurrencies. How did that happen?

Quote from: steelhouse on September 06, 2011, 07:05:34 AM

If interest is zero, bitcoin will far exceed dollar deflation due to lost coins.

2. How did you know a coin is lost?
3. Don't people lose dollar banknotes as well?

1. I should have probably move the upper date to 1971 or 1933. We were on a strict gold standard and the debt of the United States was flat. That will increased productivity resulted in deflation. It is to be noted, even when we were on a gold standard banks made loans far bigger than reserves. At times the government or banks would demand real money gold or silver for the fake money paper, which caused a lot of problems.

2. I here about it all the time, but bitcoin can easily be lost with a keystroke.
3. Yes, but compared to bitcoin they are small. Especially now when the nickles and pennies you lose are more expensive to make than the face value of the coin.