I really, really like moderate inflation. I live in Sweden where the interest rates just went
negative because we are on the brink of deflation, and the rate of inflation we have now is far too
low. We have huge problems attracting foreign attention and the swedes don\'t want to take out
loans to invest since paying them back ten years down the road hurts just as bad as paying them
now (and there\'s a real risk it might take more to pay them back later, if we go into deflation).
It\'s a real head ache that\'s all the talk in our financial world.
Getting a hold of Bitcoin is very, very hard and expensive. The value of it has deflated
dramatically from when it was introduced, and despite occasional crashes, it could very well just
keep climbing in value. It also has a cap, which to me looks like it would unleash a deflationary
spiral that would only end once we find a new currency (like the Great Depression was alleviated
when we stopped using the gold standard).
But, I\'m a computer scientist and I just can\'t stop finding bit coin supporters everywhere. It has
thousands of evangelical missionaries using blogs and magazines to tout it as a means to liberate
us from the bankers. I don\'t know, can\'t computer scientists be just as corrupt? It looks like dot
coms with access to good cryptographic algorithms and server farms who can work in parallel
could game the system even more, and once they\'ve swept up all the bit coins they would wield
more power than nation states.
Am I missing something? What does bit coin bring to the table that is worth disregarding
deflation? Does it bring positive GDP growth? Ease of investment? Monetary power to the
people? How? And, I keep coming back to this, wouldn\'t all these positives be completely wiped
out once the 30s come knocking deflation style?
Why does this currency have so many supporters? Are everyone mad?
Solution
I\'d say that some benefits of Bitcoin and other cryptocurrencies (i.e. \"altcoins\"), include:.
I really, really like moderate inflation. I live in Sweden where the.pdf
1. I really, really like moderate inflation. I live in Sweden where the interest rates just went
negative because we are on the brink of deflation, and the rate of inflation we have now is far too
low. We have huge problems attracting foreign attention and the swedes don't want to take out
loans to invest since paying them back ten years down the road hurts just as bad as paying them
now (and there's a real risk it might take more to pay them back later, if we go into deflation).
It's a real head ache that's all the talk in our financial world.
Getting a hold of Bitcoin is very, very hard and expensive. The value of it has deflated
dramatically from when it was introduced, and despite occasional crashes, it could very well just
keep climbing in value. It also has a cap, which to me looks like it would unleash a deflationary
spiral that would only end once we find a new currency (like the Great Depression was alleviated
when we stopped using the gold standard).
But, I'm a computer scientist and I just can't stop finding bit coin supporters everywhere. It has
thousands of evangelical missionaries using blogs and magazines to tout it as a means to liberate
us from the bankers. I don't know, can't computer scientists be just as corrupt? It looks like dot
coms with access to good cryptographic algorithms and server farms who can work in parallel
could game the system even more, and once they've swept up all the bit coins they would wield
more power than nation states.
Am I missing something? What does bit coin bring to the table that is worth disregarding
deflation? Does it bring positive GDP growth? Ease of investment? Monetary power to the
people? How? And, I keep coming back to this, wouldn't all these positives be completely wiped
out once the 30s come knocking deflation style?
Why does this currency have so many supporters? Are everyone mad?
Solution
I'd say that some benefits of Bitcoin and other cryptocurrencies (i.e. "altcoins"), include:
