OpenRuby.com

28 Oct '12, 8pm

Q. Why was Bitcoin designed with a decreasing production rate? #bitcoin

Bitcoin was designed to have potential to increase in value a lot over the long term. If not, noone would want to take the risc of adopting it, caring about it or developing tools for it. This gives it potential stability. When people hoard it means that they have a longterm look at the value of Bitcoin. If noone was hoarding it would mean that everyone wanted to get rid of their Bitcoins as quick as possible. And if everyone wanted to get rid of their Bitcoins, that would mean they would not want them. Now you can be sure that people will want your Bitcoins in the future. When people say hoarding is bad, they look at Bitcoin as if it was to replace a FIAT currency. Bitcoin is not a FIAT and must not replace any other currency, thus does not need to drive a countrys economy. A currency that allways goes down in value such as FIAT must be forced upon people with laws. Noone...

Full article: http://bitcoin.stackexchange.com/questions/5190/why-was-b...

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