[Cryptography] Cryptocurrency Exchange without a trusted third party (Ron Garret

[Phillip Hallam-Baker]

As a meta-point, isn't it rather odd that BitCoin makes such a big thing
about the size of the float being fixed when what has been created is an
additional source of float to the currencies already in circulation?

The claim BitCoin is deflationary only holds if you ascribe to the peculiar
notion that it will replace all other currencies. This for a system whose
transaction bandwidth is insufficient to support sales at CostCo, just one
retailer.

If we accept that the USD is not going to disappear, the net effect of
BitCoin is to pump a modest quantity of additional currency into somewhat
limited circulation.

And that is before we get to the fact that deflation is actually a worse
economic problem than inflation. Go ask the Japanese how their economy has
been doing. Or the various victims of the Euro.


the BitCoin deflationary multiplier does however encourage the notion that
the value of Bitcoin will appreciate over time.
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