Questions on: economics

The Bitcoin wiki page on scalability looks at what things would be like if transaction volume was similar to that of Visa. It states: Today the Bitcoin network is restricted to a sustained rate of 7 tps by some artificial limits. These were put in pl
This is a tough question. I'd consider Bitcoin as being just deflationary. Why? Because, instead of thinking about mining as "adding new currency", you could consider that mining is just "enabling" more coins each block from the 21 million total coin
The simple answer is that there is a constraint on the total number of coins that will be generated. In economy the fact that the supply of newly minted coins is either constraint by a constant rate at which they enter the market or, like in Bitcoin'
The idea that Bitcoin is superior to government-issued fiat is based on a few myths. Myth #1: Bitcoin cannot be created "out of thin air" This is not true. More coins can be created if a significant number of users (either the economic majority or th
According to xkcd: Money Chart estimated total economic production of the human race as of 2011 is $2,396,950,000,000,000 . Divide it by 21 million and the theoretical maximum price per bitcoin would be $114,140,476, but that figure is impossible, be
I'm pretty sure you'll never get an accurate number. I'm not even clear what you mean by transferred into the bitcoin economy. If I bought $100 worth of bitcoins 3 years ago, do we count that as $100 or the value of the BTC now? If I buy a bitcoin fo
Volatility has two sides of course, an upside (commodity or currency increasing in purchasing power) and a downside (decreasing). When you invest in something as a store of value, you're always going to appreciate when it gains value as you hold it a
People are definitely spending bitcoins--BitPay Inc processed over 5. 2 Million dollars worth of eCommerce in March 2013, and that was before the full media glut of April. Some excerpts from their blog: This eCommerce activity from merchants selling