Post
Topic
Board Politics & Society
Re: Isn't deflation theft, too?
by
cointrepreneur
on 13/06/2011, 18:25:38 UTC
How about this example

Person A and person B both have 100 bitcoins.

Person A just holds theirs and does nothing with them.

Person B goes into business. Person B buys a widget at wholesale prices, in order to be a widget retailer.
So say B buys a widget for 100 bitcoins in order to sell it to someone else. By the time B sells his widget the bitcoin has deflated and it takes less bitcoins to buy a widget. So he sells it for 99 bitcoins.

On the one hand, B has the same (or greater) amount of WEALTH but compared to A (who did nothing) he has fewer bitcoins.

A is the winner for doing nothing. Isn't this a problem for an economy when people who do nothing fair better than people who go into business?

(note: I am a huge supporter of bitcoins and their future, I'm just posting this as a philosophical question out of curiosity for good answers).