> it's only natural that the value of one coin would constantly increase
Not really. As I see it, the value is a function of demand. The fact that bitcoins have risen in value so fast, means that demand and confidence is also growing.
There isn't really a hard cap. It's just that it will get increasingly difficult to generate bitcoins, so in effect we won't have more than 21 million. The idea is to provide a predictable increase of the money supply. That is good because you know nobody's going to suddenly dump 21 million more bitcoins in circulation, and halve the value of your coinage.
That's what's happening with USD. They keep dumping trillions of new dollars in the money supply, something I really wouldn't like if I had dollars in my bank account. Just ask Zimbabwe, where they need a cartwheel of money to buy dinner at a restaurant.
So what if demand keeps growing and we need more than 21 million coins? Well the system supports up to 8 decimal points. I guess that will have to do.
As far as money laundering goes, I think it's not that much different from regular cash. I also think that tracking everyone's spending/earning habits is not the best way to stop crime.
Not really. As I see it, the value is a function of demand. The fact that bitcoins have risen in value so fast, means that demand and confidence is also growing.
There isn't really a hard cap. It's just that it will get increasingly difficult to generate bitcoins, so in effect we won't have more than 21 million. The idea is to provide a predictable increase of the money supply. That is good because you know nobody's going to suddenly dump 21 million more bitcoins in circulation, and halve the value of your coinage.
That's what's happening with USD. They keep dumping trillions of new dollars in the money supply, something I really wouldn't like if I had dollars in my bank account. Just ask Zimbabwe, where they need a cartwheel of money to buy dinner at a restaurant.
So what if demand keeps growing and we need more than 21 million coins? Well the system supports up to 8 decimal points. I guess that will have to do.
As far as money laundering goes, I think it's not that much different from regular cash. I also think that tracking everyone's spending/earning habits is not the best way to stop crime.