Quote:
Originally Posted by Tinordi
It's the lack of a central bank that explains why so many libertarians and weirdos are into bitcoin and it's the lack of a central bank that makes bitcoin functionally useless.
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I don't think you need a central bank to make a currency work.
If you think about what a central bank does it controls the quantity of the currency available through a variety of measures and works at preventing fraud.
A digital currency essentially is a currency without the ability to change policy after its creation. It can't change the amount of supply out there. I agree with your earlier post that Bitcoins flaw is that it is inherently deflationary.
I think in order to have a stable digital currency that is mildly inflationary is that you need to have the difficultly in mining based on the price of the coin. The idea being if the price goes up beyond the 2% set inflationary level the difficulty drops to increase the supply if the price drops difficulty is tightened to reduce new supply.
If you could build a self adjusting currency it would essentially control inflation for you without buisness or government influence.