Comments on: Bitcoin P2P Cryptocurrency now in public beta https://blog.p2pfoundation.net/bitcoin-p2p-cryptocurrency-now-in-public-beta/2010/06/16 Researching, documenting and promoting peer to peer practices Mon, 13 Oct 2014 20:06:51 +0000 hourly 1 https://wordpress.org/?v=5.5.14 By: Sepp Hasslberger https://blog.p2pfoundation.net/bitcoin-p2p-cryptocurrency-now-in-public-beta/2010/06/16/comment-page-1#comment-480995 Mon, 21 Mar 2011 10:37:52 +0000 http://blog.p2pfoundation.net/?p=9178#comment-480995 I have argued (elsewhere) that bitcoin is a deflationary currency. As the user base increases, and the difficulty to generate bitcoins is increasing, each single coin will become more and more valuable.

This may be a good thing for the early adopters, who are sitting on bitcoins and have not spent them. It isn’t good for the stability of a monetary system however, as there is a constant pressure for price changes, which in this case is prices for things, as expressed in bitcoin, will automatically increase.

There is another point. According to a recent article in the trustcurrency blog, bitcoin is

a rube-goldberg machine for buying electricity

quote: In the end, BitCoins create a perverse incentive to consume energy to “create money.” Here is why.

http://trustcurrency.blogspot.com/2011/03/bitcoin-rube-goldberg-machine-for.html

]]>