Bitcoins are released on a fixed schedule. If the new protocol enables them to maintain this schedule indefinitely, it will not have a shocking dilution effect.
That might be a step in the right direction, and could plausibly be based on bitcoin. Its virtues over my proposal is that it is relatively simple, and easy to implement and understand. However, if the demand for money shrinks for some reason it would cause inflation whereas if it grows (e.g. exponential population growth) it would cause deflation. It is also reasonable to think market manipulators would create volatility by abruptly offering or withholding large amounts of bitcoins. So I would say this is less optimal than a currency that can reflexively adapt itself to be automatically worth roughly the same thing to you tomorrow as it was worth today.
Bitcoins are released on a fixed schedule. If the new protocol enables them to maintain this schedule indefinitely, it will not have a shocking dilution effect.
That might be a step in the right direction, and could plausibly be based on bitcoin. Its virtues over my proposal is that it is relatively simple, and easy to implement and understand. However, if the demand for money shrinks for some reason it would cause inflation whereas if it grows (e.g. exponential population growth) it would cause deflation. It is also reasonable to think market manipulators would create volatility by abruptly offering or withholding large amounts of bitcoins. So I would say this is less optimal than a currency that can reflexively adapt itself to be automatically worth roughly the same thing to you tomorrow as it was worth today.