Quote from: aminorex on June 19, 2014, 03:32:30 PM

Quote from: Johnny Mnemonic on June 19, 2014, 01:20:41 AM

Currency cannot behave like currency if the value constantly trends upward. An asset's value appreciation tends to be the inverse of its liquidity.

Infinite divisibility means that the floating portion is always capable of providing a transmission mechanism. Increasing value means less of the float is required to perform the transmission function. It is a self-adjusting mechanism.

The demand for liquidity has presumably also increased proportionally, so I don't think your postulate is correct?

Quote from: aminorex on June 19, 2014, 03:32:30 PM

Quote from: Johnny Mnemonic on June 19, 2014, 01:20:41 AM

How much are you willing to pay to keep the greedy fatcats out of the cookie jar?

In the long run, demurrage games have vanishingly small impact compared to the forces they would mitigate. Any distribution improvements would be a tiny marginal one.

That may not be the case if the masses are mining with electricity costs that are a multiple of the income from mining. The fat cats would then have to mine at-scale at huge losses. So instead they must buy at market prices which drives the prices higher thus supporting my claim that price scales to mining demand.

OTOH, even if I am correct that price will scale to mining demand and if this caused mining to always be profitable for masses (which I don't think follows, because in economics we have the very important concept of marginal vs. average price), the balance of distribution shifts towards masses due to second order effects (velocity not just position).

Quote from: aminorex on June 19, 2014, 03:32:30 PM

The cost of those improvements would be destabilization and shrinkage of the in-currency economy, as capital fled to other media.

Capital will chase adoption because price yield scales to demand.

Quote from: aminorex on June 19, 2014, 03:32:30 PM

Separating transmission and storage creates a friction, an inefficiency and ill-liquidity in conversion, which I expect does more damage in aggregate than any improvements in distribution would be able to offset.

All monetary history disagrees with you.

Quote from: aminorex on June 19, 2014, 03:32:30 PM

Most of the social value created by a currency is created by liquidity. Any impairment of liquidity is catastrophic, if only because competing media will not suffer the same impairments, and hence will dominate.

Debunked above?