Re:Thoughts on Bitcoin
by emin-gun-sirer on Sunday December 01, 2013 @02:37PM
(#6828843)
The post assumes that Bitcoins will fail if they are not suitable as a store of value. It overlooks the fact that a currency can succeed as a medium of exchange, even if it is not suitable as a store of value.
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Being a good store of value is in fact a detriment to being a good medium of exchange. A currency should not be a good store of value, it should be a predictable store of value that inflates very slowly so as to discourage hoarding and encourage spending. PPC looks like a better currency than BTC for this very reason.
Is PPC PrimeCoin, PeerCoin or something else?
PeerCoin.
Exactly true. But even government-issued currencies are not suitable stores of value over longer time-periods due to their inflationary nature; that's why we have retirement funds etc, the game being trying to out-do inflation.
Bitcoins are inherently deflationary in nature, making them theoretically a superior store of value over longer term (e.g. retirement) than any fiat currency.