Russ Roberts, the host of EconTalk and economics professor, also doesn't think that Bitcoin's fixed supply would lead to destructive deflation.
> Isn’t a fixed supply of money dangerous?
> It’s certainly different. “Elaborate controls to make sure that currency is not produced in greater numbers is not something any other currency, like the dollar or the euro, has,” says Russ Roberts, professor of economics at George Mason University. The consequence will likely be slow and steady deflation, as the growth in circulating bitcoins declines and their value rises.
> “That is considered very destructive in today’s economies, mostly because when it occurs, it is unexpected,” says Roberts. But he thinks that won’t apply in an economy where deflation is expected. “In a Bitcoin world, everyone would anticipate that, and they know what they got paid would buy more then than it would now.”
This is not some general consensus, this is a viewpoint that exists. Among many others.
Also this:
> Elaborate controls to make sure that currency is not produced in greater numbers is not something any other currency, like the dollar or the euro, has
Is very obviously incorrect. Fed and the congress have absolutely been producing new money in great numbers without any controls by the people. Ever seen the national debt watch? If you have not researched how Fed works and how (and when) new money has been produced during recent decades, you should really do that. You will be scared.
I think there's a misunderstanding. Russ Roberts is saying in that sentence you quoted, basically, "USD and EUR can be produced in huge amounts just because the monetary authorities want to". Are you sure you think he's incorrect?
> Isn’t a fixed supply of money dangerous?
> It’s certainly different. “Elaborate controls to make sure that currency is not produced in greater numbers is not something any other currency, like the dollar or the euro, has,” says Russ Roberts, professor of economics at George Mason University. The consequence will likely be slow and steady deflation, as the growth in circulating bitcoins declines and their value rises.
> “That is considered very destructive in today’s economies, mostly because when it occurs, it is unexpected,” says Roberts. But he thinks that won’t apply in an economy where deflation is expected. “In a Bitcoin world, everyone would anticipate that, and they know what they got paid would buy more then than it would now.”
https://www.technologyreview.com/s/424091/what-bitcoin-is-an...