Re: Why such agreement that Deflationary currency is a bad thing
Deflation is "bad" in the way that it postpones consumption.
Imagine you wanted to buy a new TV set and you knew that next month its price would be lower, it would be quite rational for you to postpone your shopping until next month.
But then again, next month, you would knew that the price will drop more if you wait more...
Deflation is good for hoarding, bad for consumption whereas
Inflation is good for consumption, bad for hoarding.
Imagine you wanted to buy a new TV set and you knew that next month its price would be lower, it would be quite rational for you to postpone your shopping until next month.
But then again, next month, you would knew that the price will drop more if you wait more...
Deflation is good for hoarding, bad for consumption whereas
Inflation is good for consumption, bad for hoarding.
You are spreading the fallacy again. Of course I would wait a month if the price of that TV is expected to be 100% then. Probably the same with 10% a month price decrease. But now let's assume that Bitcoin matured and reaches a stable stadium. The annual deflation is about 2%
Would you hoard for 80 years of your life and never ever buy that TV until you die or will you finally put this bad thinking out of your system and realise that the only thing of value you have is : time. No one gets more time per second than anyone else. People will spend if deflation is mild. They spend now as well while technology improves by leaps every year. People cannot and will not wait their whole life to get a piece of the action.
But fair enough, if BTC remains there, our points will be tested and tried and there is nothing we can do about it
