On Wed, Aug 5, 2015 at 2:11 PM, Jed Rothwell <jedrothw...@gmail.com> wrote:
I know little about economics, but limiting the amount of money based on > the amount gold we have -- or the number of bitcoins -- seems like utter > lunacy to me. It never worked in the past. There are two reasons: > > 1. The money supply has to increase when there is more economic activity > and more people, or you get severe deflation. This happened in the U.S. and > other countries on the gold standard. Severe deflation is a bad thing. > This is the reason I've never understood the appeal of gold or bitcoin. The urge to take the control of the amount of money in circulation out of the hands of central banks seems to disregard the danger of deflation. Eric
