Quote from: schizoid on February 18, 2014, 07:07:38 AM

Quote from: JayJuanGee on February 18, 2014, 06:40:44 AM

Maybe I am being too narrow minded to think that way, but compounding interest is a powerful thing and if BTC is guaranteed to go up every year by even as little as 10-15% (and those are conservative numbers based on the supply issue and I would think that the guaranteed price increase would be greater than 15% annually). BTC would change the whole dynamics of the world and incentives for labor......

Once bitcoin matures the deflation rate should match the growth rate of the economy, around 3-4%. If people stop working the economy will slow and the deflation rate will be less. It's a self limiting problem.

sorry Schizoid, but your comment seems like too much pie in the sky for me to relate... Surely, both you and I are speculating a bit about the future and maybe it is so far into the future that it does NOT matter too much.. but YOU know that the BTC protocol already sets the parameters for the expansion of the BTC supply up until 21 million until 2140... so until 2140, the amount of expansion will be decreasing... so now it is about 12% then in 2017, it will be 6% then in 2021 it will be 3% then in 2025 it will be 1.5%, then in 2029 it will be .75%... all the way reducing in half every four years until we get to 2140.... Even by the time we are in 2029, the rate is less than 1%.

Your other point about needing less expansion will probably only work if there is less population.. Do you really think that we are going to be forced to develop a system of reduced consumption and localism.. Maybe that will happen, but that is surely speculation, at this point... My earlier point is that I am thinking that probably it would have been better to have bitcoin to have greater and consistent expansion built into the currency.. maybe 3% a year or something like that.. and then just to have that forever and ever.... b/c people are going to lose their bitcoins and population expansion.. but there are also unknowns.. as well... .