
Bitcoin Will Spiral Up and Down Forever - czr80
http://www.slate.com/blogs/moneybox/2013/04/10/bitcoin_s_deflation_problem.html
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warfangle
I think these massive deflationary cycles will only cease when it becomes the
currency of record for more than just exchanges.

But that's my layman's speculation. I have no economic training. Feel free to
repudiate.

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gfodor
I'm a bitcoin skeptic but not for this reason. If this were true than we would
have never had a functioning currency until fiat money, but we did. (Since
gold, ergo money, was a scare resource as well.)

The biggest hurdle to bitcoin is simply that so far it has not registered on
the radar of world governments. If bitcoin ever gets to the point of being a
legitimate participant in the currency wars, it will be facing the wrath of
all central banks and governments. They will find a weakness.

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just2n
You can subdivide gold and other scarce resources. A gold bar you might trade
with is 12.4kg, or at current market rate, about $700,000. But you wouldn't
carry that to your local market to buy some toothpaste and a toothbrush, which
might be valued at $5. But you can remove a small portion of the gold so that
the trade is fair.

Can you give someone one tenth of a bitcoin?

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MichaelGG
Yes, Bitcoin is divisible down to extremely small fractions.

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warfangle
To clarify; the smallest division is the Satoshi, at .00000001 bitcoins.

