ferroh

If ASICs are shipped in the next couple of months, then very soon GPU mining will do as little as CPU mining does today.

Oh please, and then they charge you 3.0% when you do a trade on your first 100 bitcoins.

So if you buy $5 worth of bitcoins, it costs you 61.2% in fees.

If you buy $50 worth of bitcoins, it costs you 9% in fees.

If you buy $100 worth of bitcoins, it costs you 6% in fees.

Regarding your second sentence:

Are you suggesting that bitcoins are struggling because people will not want to spend something that increases in value?

So bitcoins aren't purchased because they will increase in value too much?

That is the same circular logic that is used to explain "deflationary spiral", and it doesn't make sense.

Consider high tech equipment like a computer. You know that the price of a computer (or TV, or hard drive, or graphics card) will fall rapidly but you buy it anyway because you want to purchase it. It doesn't actually matter much that the price of the item is deflating. And these are for luxury items. Price deflation of goods matters even less when it is for something essential, like basic food items.

In other words, what you are saying is that the price of items priced in bitcoins will fall (because your bitcoins will become worth more and more), and therefore people will not spend their coins. However, we already see real world examples of deflating prices, where people still buy these items.

He meant the inflation of the _money supply_, not the inflation of the price of goods.

He is actually suggesting the opposite about the price of goods -- that they will deflate.

You absolutely can make the statement that the money supply of Bitcoin will not inflate in the long run, by the nature of their design.