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>It has numerous technical shortcomings that other digital cash systems do not have.

Care to tell us what it is, or it doesn't exist.

Also, you don't sound someone who is doing his PhD, you sound more like someone from some government agency upset about a parallel currency system that has the potential to stop its users from being unknowingly abused of their personal information.

In my opinion, If Bitcoins are implemented on a massive scale, then there is a heavy chance that the rich will no longer become richer and the poor will no longer become poorer. If and only if implemented properly, on a massive scale. Right now, we can only hope.




A fixed supply currency in a growing economy, i.e. one where the quantity of "stuff" is increasing, is inherently deflationary - the ratio of "stuff", or capital, to money goes up since the denominator is fixed. This accrues capital to those who hold money without them having to do anything.

William Jennings Bryant's "Cross of Gold" speech pilloried the gold standard precisely because it preserves the wealth structure through time. Fiat money, on the other hand, promotes the churn of money and thus tends to de-stabilise the hierarchy of wealth over time.

Switching to a fixed supply currency, e.g. gold or Bitcoin, means those who hold wealth would become wealthier by virtue of holding wealth.

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"Bitcoins are implemented on a massive scale, then there is a heavy chance that the rich will no longer become richer and the poor will no longer become poorer"

This is how we know you are not being realistic. Bitcoin is not pixie dust.

Let's put it this way: rich people could just buy all the Bitcoin currency units out there with their other assets, and then you would see them become even wealthier just by holding on to those units as deflationary trends kick in, and that is assuming that we lived in a universe where currencies without any legal structure around them can really become big. Do you really think people are going to forget about US Dollars or Euros or Pounds Sterling overnight? People still need to pay taxes, they still have to use courts to settle disputes, and so forth -- and poor people are going to be in much greater need of the currencies used for those things than rich people, and will be much more willing to exchange Bitcoins for those currencies.

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