tag:blogger.com,1999:blog-2595455932654799850.post4959869795940141311..comments2023-11-02T10:55:07.208+01:00Comments on The Monetary Future: A Rally in BitcoinJon Matonishttp://www.blogger.com/profile/04111660030028727950noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-2595455932654799850.post-53556651786456619612010-12-01T17:34:31.150+01:002010-12-01T17:34:31.150+01:00I would also like to remind everyone that the star...I would also like to remind everyone that the start of the BC hash chain is a completely arbitrary hash.<br /><br />A new chain can be started with a new hash at any time, for when we need more BC.<br /><br />Also - no one points out that the reason BC are valuable is that they are constrained - that is, we are limited as to how many there are, and not by our good will, but by math.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2595455932654799850.post-20043201958836188582010-11-10T18:38:05.376+01:002010-11-10T18:38:05.376+01:00Micah, I was actually referring to a deflation of ...Micah, I was actually referring to a deflation of the price level which would make transactions increasingly difficult and impractical. Appreciation of the bitcoin unit value is not a negative in itself, but it can have a negative impact on commerce from a psychological standpoint.<br /><br />It has been proposed that before the year 2140 (when all 21m bitcoin of this iteration will complete), a fork or parallel bitcoin economy may be desirable for price stability. This would be no different than today where there is a gradual increase in the supply of gold as the world economy expands. Or, are you proposing maintaining the 21 million total as the global population swells to over 20 billion?Jon Matonishttps://www.blogger.com/profile/04111660030028727950noreply@blogger.comtag:blogger.com,1999:blog-2595455932654799850.post-41796057767669442622010-11-09T23:13:30.312+01:002010-11-09T23:13:30.312+01:00Sorry, the above should have been 2,100,000,000,00...Sorry, the above should have been 2,100,000,000,000,000. I forgot a 0 there. That is 2100 Trillion "pennies".Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2595455932654799850.post-53106970368615940292010-11-09T23:11:50.596+01:002010-11-09T23:11:50.596+01:00I agree with the above comment. A subdivision lim...I agree with the above comment. A subdivision limit is an issue, but deflation is not. That being said, bitcoins can be subdivided to 0.00000001 decimal places meaning 21M bit coins can be subdivided into 210,000,000,000,000 "parts" (equivalent to a single US penny).<br /><br />Also, that 21M bitcoin limit is a purposeful technical restriction that can not be surmounted in any way which is what makes them scarce (unlike modern currency). If it were possible to raise that limit all advantages of BitCoins would go out the window because they are no longer scarce and some controlling body could just up the limit when they needed cash flow (as current governments do now).Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2595455932654799850.post-10349584123223599712010-11-09T22:48:58.376+01:002010-11-09T22:48:58.376+01:00"when unsustainable deflation appears" Y..."when unsustainable deflation appears" You mean the loss of bitcoins and not reducing prices in terms of bitcoins, right? Because it's not a bad thing if bitcoins become more valuable, but if they are lost then we may eventually hit a subdivision limit.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-2595455932654799850.post-55352447874050224232010-10-20T03:19:03.661+02:002010-10-20T03:19:03.661+02:00Thank you for article. :)Thank you for article. :)LZhttps://www.blogger.com/profile/01099091531162970089noreply@blogger.com