Just to add more confusion (who me?) I’ve been worrying this week about the fixed supply of Safecoin and the problems of deflation this brings (ultimately).
What I mean is that for a non-inflationary currency, which is rising in value (as @Seneca has recently explained it will once the network stabilises - due to fixed supply but ever expanding need for utility)… for a currency that rises in value (deflation) rather than has built in inflation, then people perceive that they can benefit by holding alone, which further reduces the supply in circulation. This creates a well known deflationary spiral.
This just happens to be the problem that governments and central banks around the world are terrified of right now, and as any observer can see, they are taking desperate measures (near zero interest rates plus massive quantitive easing - effectively printing money and injecting it into the economy by buying up government debt) - all in order to try and introduce inflation, so far with little result. UK inflation blipped up from 0.0% to 0.1% yesterday and the GBPUSD ended up 0.6%, against the USD trend simply because of this unexpected, tiny rise in UK inflation. Almost everywhere deflation (or likely a long period of stagflation) threatens like a dark shadow. Anyway, what I’m saying is that without any inflation in the Safecoin economy, it seems we’re programming the system to move ever more towards hoarding and deflation at some point (having a fixed limit on supply ensures this unless utility of Safecoin falls, and we want and expect utility to increase).
I don’t know if there’s a way to stop this in the long run, but I do think the system could attempt to reduce the impact / likelihood. At the moment it seems set up to cause problems. This is probably another thread, so I’m poised to kick that off if this post triggers debate around that. Or maybe @dyamanaka will ride to the rescue!?