Comment by osigurdson

Because difficulty does not adapt dynamically, if the miners do not move then the fork will be defunct because it will take literally days to weeks to mine a block, and to mine the 216 blocks that would trigger a difficulty adjustment would also take proportionately longer. So transactions would sit in the mempool and the currency would be mostly useless.

I think for most bitcoin users, the main usability concern wrt forks is being on the most secure chain; i.e. hashpower. If you're willing to trade being on the most secure, most historic chain for specific technical features then you're probably on an altchain already. In practice every hard fork in history the chain with the most hashpower has retained the ticker, meanwhile the users are never organized enough to do anything but follow that decision.

It's nice when I do it. Not so nice when everyone else does it. If sitting on the money has better returns than running a supermarket, why run a supermarket? Any investment has to beat deflation. Why hire people? In fact maybe I should fire everyone to hold on to more capital and spend as little as possible...

The point of money is not to reward delayed gratification. The point of money is to efficiently tabulate human preferences, and deflation directly counteracts this by introducing potentially unbounded latency at every step. That's why it destroys economies, as it has throughout history.

> Losing purchasing power on your money is a bug.

The idea that you can put away an amount of money under your bed that buys 1,000 loaves of bread or one GPU, leave it there for decades, and then have it buy exactly the same number of loaves of bread or GPUs is a fantasy. You can hold onto the shiny rock but you cannot stop the world rotating around you and changing all its relative prices.

> For most of human history the money was stable

Achieved by a combination of restrictions on trade, price stability laws, occasional crippling shortages, and quietly shaving bits off old coins. A much poorer world.

I think deflation-based economy could produce some interesting capital-allocation environemnt. Investment offering a 2% real return becomes unattractive if cash itself earns 2% real purchasing-power yearly. You could argue this raises the hurdle rate for investment and eliminates low-quality projects. And the counterargument is exactly the same: it raises the hurdle rate for investment and therefore some potentially good projects would never receive funding. And thats probably where the intellectually interesting argument really lives, rather than in inflation good deflation bad

> Deflation is a good thing, it rewards delayed gratification.

"Delayed gratification" is also provided by investments producing returns. An economy with lots of investors will outperform one where people stuff their cash into their mattress, and deflation makes it very hard for potential investments to beat that strategy.

> For most of human history the money was stable.

[citation needed]

The Spanish empire was driven to collapse by hyperinflation. Even in the US, there were financial collapses in the 19th and 18th century. Bank runs have been a thing for as long as banks have: https://en.wikipedia.org/wiki/Bank_run

Your premise is based on faulty assumptions. The existence of credit itself is what causes monetary instability, and without credit the world would look very different.

The right thing would be to have 0 change in the value of money as long as the right amount of money exists.

The right maount of money is the amount of money we as normal humans need to work with (buying and selling stuff).

Inflation and deflation are results of too much money or too little money in comparision to the production capability of a society.

If i save today for my retirement and money gets less valuable when i'm retired, i have to give more 'saved' capacity back to get the real capacity (people taking care of me) and if i have more value, the others have to do more for me.

Controlling this is 'work' from experts and is not solved by bitcoin btw.

Why does everyone assume that we're the ones keeping money under the mattress, not the ones who would have been paid by money otherwise not spent? All transactions have two sides, no?

If you have a brilliant technical solution that requires throwing out all conventional economics, you don't have a brilliant technical solution. Bitcoin is rotten to its core and every excuse you make for it proves the point.

>For most of human history the money was stable.

Absolutely ridiculous. People have been counterfeiting and debasing money for as long as there has been money.

That only makes sense if money is a durable good destroyed by use. But money is improved by use and lost when put under a mattress. In economics terms, MV=PQ, and your proposal sets V low, which harms Q (goods available for sale)

Hahahaha, oh my. You think the world was some idyll halcyon pre bretton woods? My man Enmentrna is going to come back and declare a jubilee for your great revelation. When has any historic monetary system been “stable” for an appreciable amount of time. Debasement is a very literal ancient word and problem.

Even your straw man 20th century cut off is hilarious where you just kind of forget about 1873? Or maybe that decade is your shining example of the benefits of deflation. So much joy and global prosperity the peasants just forgot how to eat. Its cool, Bismarks destruction of the bimetallic system really helped usher in that age of stabikity from the international gold standards.

Historically, as far as I am aware, there was never a situation when deflation coincided with good things happening.

A healthy amount of inflation keeps the economy going.

> For most of human history the money was stable.

Wildly inaccurate, thanks to forgery and coin shaving - sometimes even governments officially reduced the silver or gold content to make more money out of their coin reserves. Even when proto-banks began issuing letters of credit, the quasi-fiat letters were subject to loss of confidence.

However, the availability and quasi-fungibility of other silver/gold currencies meant that if you didn't trust Edward's penny, you could use a Dutch penning instead. That provided an alternate path to dampen inflation, as long as the dominant currency was coinage.

But it was equally hard to buy a pig or a new suit with silver pennies by the 20th century. Bank notes, even when theoretically backed by exchange for their value in precious metals (the Gold Standard), were even easier to forge, and suffered from "loss of faith" inflation (runs on banks meaning they couldn't practically be exchanged for 14 pounds of silver pennies).

Well, countries have experienced moderate inflation and moderate deflation, ask the ones who lived through both which one they preferred.

> taking on debt you don't really need.

How does that work? When inflation goes to 18%, borrowing rates go to 23%.

Yes, they could change that, too.

However I expect that adding more decimal places will actually happen, but adding extra bitcoins won't.

AFAIK it can be changed later.