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June 11th, 2012:

“Bitcoin, impressive but flawed” – Anthony Migchels

In an analysis well worth reading Anthony Migchels treats the promise of Bitcoin’s peer to peer architecture as well as one of its prominent flaws, its deflationary dynamics. Read it here.

My own previous post discussed these and other points.

Mutual credit systems address the insufficiency issue that bitcoin suffers from, while demurrage charges, perhaps from backing systems that charge the currency holder for storage and degradation of the backing material, can be part of a means of addressing the problem of balancing inflationary and deflationary pressures, along with the need-driven currency creation of mutual credit.