a thoughtful web.
Good ideas and conversation. No ads, no tracking.   Login or Take a Tour!
comment
AlderaanDuran  ·  4397 days ago  ·  link  ·    ·  parent  ·  post: Bitcoin-based casinos

Yeah, that problem is it will deflate, as there is a planned limited number of them to go into circulation. So as the usage picks up, each bitcoin will be worth more and more, which will result in people hoarding them early, and adopting to use them later would be difficult and cost prohibitive for anyone looking to start using them. Plus, if you were to have any debts based in BTC, they would only become more difficult to pay.

Deflation is what caused the great depression, and it's what Japan is still struggling with economically. Inflation, in small and controlled amounts is a good and necessary thing. Deflation, however, is bad news for any currency. And Bitcoins are bound to inflate simply by design.