Chronic deflation may keep Bitcoin from displacing its fiat rivals

  • That other currencies remain the medium of account has so far been the Bitcoin economy’s saving grace.
  • If the money supply grows too slowly, then prices fall and workers with sticky wages become more costly.
  • Financial liberalisation moves ahead in China
  • Massive Bitcoin heists, like the recent plunder of roughly 6% of outstanding Bitcoins from the Mt Gox exchange, reduce confidence in the currency.
  • Volatile values could prevent Bitcoin from ever establishing itself as a medium of account.

Read the full article, click here.


@ItheMissingLink: “.@Gizmodo perhaps that federal judge should advance to the 21st century or read”


Chronic deflation may keep Bitcoin from displacing its fiat rivals


Chronic deflation may keep Bitcoin from displacing its fiat rivals