Hearn: The resolution of the Bitcoin experiment [LWN.net]

Hearn: The resolution of the Bitcoin experiment

Posted Jan 20, 2016 19:01 UTC (Wed) by Cyberax (✭ supporter ✭, #52523)
In reply to: Hearn: The resolution of the Bitcoin experiment by nybble41
Parent article: Hearn: The resolution of the Bitcoin experiment

> That is simply nonsense. The problem wasn't the amount of gold or silver. In the absence of fixed exchange rates, the prices of the metals will simply adjust to accommodate the current supply and demand.
Yes. For example, by causing deflation.

Just ask Hitler about it - it helped him a lot.

> The real problem was that the U.S. government issued notes for more gold and silver than it actually had, and eventually went bankrupt (in effect, though they didn't use that term) and refused to honor its banknotes according to the original terms.
During which of about 10 crises that happened before the Gold standard?

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Hearn: The resolution of the Bitcoin experiment

Posted Jan 20, 2016 19:22 UTC (Wed) by corbet (editor, #1) [Link] (2 responses)

Perhaps this suggests we're getting close to the Godwin point in this particular thread?

Hearn: The resolution of the Bitcoin experiment

Posted Jan 20, 2016 19:36 UTC (Wed) by nybble41 (subscriber, #55106) [Link] (1 responses)

It's not Godwin unless someone makes a comparison between their opponent(s) and the Nazis; simply discussing the conditions in Nazi Germany doesn't count. Just the same, any time someone complains about the supposed dangers of deflation it's probably time to wrap up the thread. Deflation doesn't cause economic problems. There are studies showing that there is no consistent correlation between instances of deflation and economic difficulties. It can sometimes be a *symptom* of deeper issues, like in the case of the American Great Depression, where the deflation followed a period of significant inflation and was accompanied by a major credit contraction which also wiped out a significant fraction of everyone's savings.

Hearn: The resolution of the Bitcoin experiment

Posted Jan 20, 2016 19:41 UTC (Wed) by Cyberax (✭ supporter ✭, #52523) [Link]

> Deflation doesn't cause economic problems. There are studies showing that there is no consistent correlation between instances of deflation and economic difficulties.
[citation needed]