Re: Bitcoin's first major deflation event, and its consequences
quote from the Porsche Cayman selling thread:
Maybe people just don't want a Porsche currently as badly as the politicians crying for the economy to revive would like?
Maybe we're currently still producing much more stuff than needed.
from above link:
Oh my god! It's harming the holy company sales. Quick, DO SOMETHING!
Do we want:
or
I think if we want the second option, the first one is not necessarily a way to achieve that. Maybe we should start thinking more fundamentally about what role "employment" plays or should play in our society.
I remember as a child I didn't understand why everybody was so keen to have employment. It seemed to suck to have a job. It was explained to me that it was about the money. Actually nowadays I think it's about security. People are afraid of not being able to live well and support a good life for their family.
In a "deflationary spiral", it's suddenly possible for people to actually save money. They might decide to work for 2 years and then take a break and see the world or spend more time with their loved-ones for a year or two. They will still buy food, shelter and airplane tickets and at the same time make room for someone else to earn some money.
I know people will probably call me naive and tell me it's more efficient to invest into one employee and suck the life out of him than to educate two of them.
I still think using "sound money" will change a lot of things in the minds of people and it's the way to go.
;tldr: "The economy must grow" <- I'm sick of that shit. In a deflationary spiral "the economy would grind to a halt" <- I seriously doubt that.
Maybe in 2 years I'll buy it for 0.1 BTC 
Maybe people just don't want a Porsche currently as badly as the politicians crying for the economy to revive would like?
Maybe we're currently still producing much more stuff than needed.
from above link:
Quote from: St. Louis Fed
While the idea of lower prices may sound attractive, deflation is a real concern for several reasons. Deflation discourages spending and investment because consumers, expecting prices to fall further, delay purchases, preferring instead to save and wait for even lower prices. Decreased spending, in turn, lowers company sales and profits, which eventually increases unemployment.
Oh my god! It's harming the holy company sales. Quick, DO SOMETHING!
Do we want:
- constantly growing economy
or
- happy people
I think if we want the second option, the first one is not necessarily a way to achieve that. Maybe we should start thinking more fundamentally about what role "employment" plays or should play in our society.
I remember as a child I didn't understand why everybody was so keen to have employment. It seemed to suck to have a job. It was explained to me that it was about the money. Actually nowadays I think it's about security. People are afraid of not being able to live well and support a good life for their family.
In a "deflationary spiral", it's suddenly possible for people to actually save money. They might decide to work for 2 years and then take a break and see the world or spend more time with their loved-ones for a year or two. They will still buy food, shelter and airplane tickets and at the same time make room for someone else to earn some money.
I know people will probably call me naive and tell me it's more efficient to invest into one employee and suck the life out of him than to educate two of them.
I still think using "sound money" will change a lot of things in the minds of people and it's the way to go.
;tldr: "The economy must grow" <- I'm sick of that shit. In a deflationary spiral "the economy would grind to a halt" <- I seriously doubt that.