Why hasn't Silk Road succumbed to this 'deflationary spiral'? According to your theory, people won't buy weed on Silk Road because next week the weed will be cheaper. Yet Silk Road is still doing millions in business a month.
http://en.wikipedia.org/wiki/Silk_Road? Or are you talking about weed? Am I right to guess that more weed is being created all the time thus filling the demand? How the heck is this related to Bitcoin with a maximum cap on quantity?! Weed is also a consumable product. I fail to see how it's meaningful here at all.
Simple Math is not a theory. I've already given links about the deflationary spiral and some simple math distilling down the whole thing showing how Bitcoin could never be more than a passing fad (people who fall into the graphic in the third post). Are you capable of deconstructing the math or merel giving irrelevant anecdotes?
BTW, Bitcoin is open source. You can fork it anytime and make your own currency that won't end up in a 'deflationary spiral'. You could call it InflatoCoin or something and have it inflate forever.
Doppel: It would end in a deflationary spiral
Dissipate: But you don't need to worry about that; you can just create your own one!
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The value of Bitcoins has gone up massively, then crashed, now doubled again. Further, it's inevitable that were it ever to gain a real foothold all users of it would be embraced by a deflationary spiral. Inevitably. Yep, these are the markers of a great alternative currency :thumbsup: