Quote from: bytemaster on July 30, 2010, 01:34:28 AM

With bit coin there is no reason to accept anything in place of a bit coin.

Everything you said is clear to me, but I disagree on one point.

If there is deflation and people start hoarding money thinking that their money will value more later (so they have an incentive to start spending their money later - half the money for milk), credit creationists would intervene on this opportunity. It's a matter of timing. So, just because of this timing (a few entities are far more mobile than the entire BitCoin network), you end up having a few entities hoarding the power to create stuff which works as money, rather than allow BitCoin itself to do that directly for everybody.

People would accept this credit because its available and works as money. Consequently, there is transfer of wealth (from the entire network to the few credit creationists).

Might not become significant, I have no idea, but I gave this as an example for the ability of the network to correct itself.