From: "Adam Back" <[EMAIL PROTECTED]> > So this would be the argument for a closed supply of money in the > system, like the digicash betabucks where they stated up from that > they would only issue 1,000,000 betabucks. People trade them based on > supply and demand. > > Perhaps. Though at the time Wei Dai had some arguments at the time > that if they were popular, they would be a good investment and people > would have an incentive to hold on to them which would make them > difficult to obtain, highly inflationary, and hard to use.
I have missed that one; however, it is wrong - if people hold them, then they become MORE valuable, and thus you have high deflation - the purchasing power of money grows - which is great. And if their value gets so big that subdivisions start to become necessary, one can always convert them to "new betabucks", each old one being worth a million new ones. End of problem. Mark
