[jammies]

Originally Posted by Jason14h

I never said said anything about Bitcoin being anti-inflationary as a key argument for its usefulness..

I never said you did say that, I said that you claimed deflation of bitcoin (aka increase in value of each coin) is the same as inflation of a fiat currency (printing more American dollars). Here, again, is where you make that false claim:

Originally Posted by Jason14h

The increase in value/market cap is the same as 'printing' more cash and increasing the USD total world 'market cap' of USD.

Inflation is a core feature of our current financial system, you cannot just swap it out for deflation and tinker around a bit to fix the systemic issues that would arise. Just one example is loans - if I loan you a bitcoin at 5% interest, next year you owe me 1.05 bitcoins. If the future bitcoin has appreciated 20% in value that year, you now owe me the equivalent of 1.26 bitcoins, for a real interest rate of 26%. You would need to charge negative interest rates to make loans attractive to borrowers in that case, and why would a bank do that when they could just keep the money for a year and make 20%?

This is but one reason why the idea of subdividing bitcoins smaller and smaller over time, aka deflation, is not workable. Another is that, unlike fiat money supply which is controlled by governments, there is going to be no central authority which will be able to control the rate at which deflation occurs. This is not a strength of bitcoin, but a weakness - how will it deflate? Do you think human beings willingly will take a yearly salary cut? Merchants will charge less and less bitcoin for their goods just because? Where is the incentive, and what market force will cause that to happen?

Originally Posted by Jason14h

You ignored the entire rest of my post. I argued cost is a key that blockchain can massively disrupt.

Not with the blockchain bitcoin uses. Maybe some better-designed crypto might do that, but bitcoin is extremely inefficient at recording transactions. A cursory search shows that the btr transaction fee on October 29th of this year was $11.66. That is hardly disruptive, other than negatively. https://www.coindesk.com/bitcoin-tra...-fees-hashrate

I don't really care enough to go through every single thing you assert and check it. Explain how deflation would work, with concrete examples, and I'll be happy to debate that, though.