BitCoin - Online Currency

[Elwar]

I've been looking into http://www.bitcoin.org the past couple of days and it looks like a viable decentralized electronic currency.

Right now you get paid to run your own "electronic bank" and they have currency exchanges and services you can use the money for.

And it's all anonymous.

I like what I see so far and I'll probably start working on apps that support this currency.

[fisharmor]

The limited inflation of the Bitcoin system’s money supply is distributed evenly (by CPU power) throughout the network, not monopolized by the banks.
Ok, so we're really just realizing Friedman's idea of using a computer to control inflation?


The total eventual circulation of Bitcoins will be 21,000,000 coins.
No, it's apparently not computer-controlled inflation... if there is a maximum of 21 million coins, then by definition there must be price deflation at some point, right? Supposing that they ever get used for anything, that is.

[Elwar]

then by definition there must be price deflation at some point, right? Supposing that they ever get used for anything, that is.

Correct. As people lose their bitcoin codes or stop using them there will be deflation.

So your bitcoin will gain value over time.

[fisharmor]

I like the idea of deflation. Haven't yet heard why it is a bad idea.
One thing that bothers me is that in the FAQ and the forums I don't see the question "how am I not going to prison for using this" answered anywhere.

[fisharmor]

Posted the obvious question on the forums.
http://www.bitcoin.org/smf/index.php?topic=516.0