Quote from: Giulio Prisco on August 07, 2014, 10:08:06 AM

Quote from: Anders on August 05, 2014, 07:34:00 AM

Having bitcoin being deflationary was probably the right decision. That is one key that has made bitcoin a huge success because it keeps the value of bitcoin up and likely increasing over time.

I am not sure this is a plus. If the value of Bitcoin keeps going up, almost by-design and de-facto, then everyone holds and nobody uses Bitcoin to buy things. Then Bitcoin is only a means of speculation and not a currency, and I am not sure that is a huge success.

It is a plus because if I make a decision to invest my BTC in an entrepreneurial undertaking, I have to be convinced that I'm making a sound, profitable decision. If my business or investment won't pay off more than just holding BTC, then I hold. "Hard money" incentivizes better decision making, which is the opposite of the effect caused by easy money / credit expansion which encourages me to just throw money at projects that might not be sustainable (buying a house I can't afford, opening stupid businesses, consuming too much, etc).

Biggest problem: 51% attack by an entity wishing to destroy Bitcoin. But I am paranoid.

laurapalmer

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