Quote from: Peter R on March 24, 2014, 02:31:46 PM

Quote from: Zapffe on March 24, 2014, 02:23:14 PM

While I agree that stable deflation (1% year) could be done without heavy drawbacks, then it's still not as efficient as with stable inflation. (with bitcoin there is no stability with deflation either). In the modern world, the major powers are in a constant economic battle with each other. If deflation would be more efficient, then you could be sure that they would adopt it just to have an edge over their competition.

I agree that deflation would be less "efficient" for the "major powers" who presently have first access to the newly printed money and that this is why we haven't adopted it.

Quote from: Zapffe on March 24, 2014, 02:23:14 PM

Without trust, bitcoin will just die. Trust is the main thing that makes people put their wealth into bitcoin. Without trust there will be no wealth in bitcoin, and it will be just a fun innovative play money.

I agree that trust is important. A society that values honesty and integrity will be happier and more productive than a society that doesn't. We want to trust people and have them trust us back, because business and relationships are more efficient after trust has been earned.

I am only making the point that with bitcoin trust is optional.

Would you rather have a financial system where trust in third-parties and authorities is required (whether you feel they've earned it or not), or one where trust is optional and at your discretion?

I think that our main disagreement comes between your opinion that inflation creates garbage output, and my opinion that inflation has little to do with garbage output, but the problem is in management supervision and corruption.
That is the main reason why more developed countries, with better education and tradition, can handle inflation better. They can handle the fast money flow, while still keeping constructive directions in production. When you throw a lot of money at fools, then they can't do anything constructive with it, and they are just wasteful.

I think that a rule emerges there, that better developed countries can use higher inflation where deflation could fit to less developed countries.

I'm totally pro privatized monetary systems, where people could choose the currency they use without the restrictions of legal tender. Just bitcoin itself is far from something that could be trusted. The idea has a lot of potential for the future though.