Bitcoin P2P e-cash paper

[James A. Donald]

Satoshi Nakamoto wrote:
 > Increasing hardware speed is handled: "To compensate
 > for increasing hardware speed and varying interest in
 > running nodes over time, the proof-of-work difficulty
 > is determined by a moving average targeting an average
 > number of blocks per hour. If they're generated too
 > fast, the difficulty increases."

This does not work - your proposal involves
complications I do not think you have thought through.

Furthermore, it cannot be made to work, as in the
proposed system the work of tracking who owns what coins
is paid for by seigniorage, which requires inflation.

This is not an intolerable flaw - predictable inflation
is less objectionable than inflation that gets jiggered
around from time to time to transfer wealth from one
voting block to another.

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