

Will Deflation Destroy Bitcoin? - davidhollander
http://bitcoin.stackexchange.com/questions/66/will-deflation-destroy-bitcoin

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davidhollander
Krugman wrote a column on BitCoin:
[http://krugman.blogs.nytimes.com/2011/09/07/golden-
cyberfett...](http://krugman.blogs.nytimes.com/2011/09/07/golden-
cyberfetters/)

He predicts failure by asserting its algorithmic scarcity results in an
ultimately deflationary currency which will result in hoarding and not
spending money on goods, and uses it as a proxy for arguing against returning
the USD to a gold standard.

I thought the first answer was an interesting repudiation regarding currency
divisibility and effects of deflation. I think it's interesting that although
prices for computing power are massively deflationary, consumers continue to
keep buying faster computers every few years.

