overcoming ecash deployment problems (Re: all about transferable off-line ecash)

[Marcel Popescu]

From: "Adam Back" <adam at cypherspace.org>

> So this would be the argument for a closed supply of money in the
> system, like the digicash betabucks where they stated up from that
> they would only issue 1,000,000 betabucks.  People trade them based on
> supply and demand.
>
> Perhaps.  Though at the time Wei Dai had some arguments at the time
> that if they were popular, they would be a good investment and people
> would have an incentive to hold on to them which would make them
> difficult to obtain, highly inflationary, and hard to use.

I have missed that one; however, it is wrong - if people hold them, then
they become MORE valuable, and thus you have high deflation - the purchasing
power of money grows - which is great. And if their value gets so big that
subdivisions start to become necessary, one can always convert them to "new
betabucks", each old one being worth a million new ones. End of problem.

Mark