Post
Topic
Board Economics
Re: Inflation and Deflation of Price and Money Supply
by
synthlock
on 03/10/2017, 02:04:40 UTC
You guys can't really believe it works like this, can you? Deflation over 2 years vs. inflation over 100 years is not even close to a fair comparison, to start. Secondly, deflation of this scale discourages an active economy (as we've already seen with BTC) and makes it worse, especially with a limited currency like BTC. People sit on their BTC and don't spend it because it's an investment. Third, cost of goods/services and salaries are (though sometimes poorly) adjusted for inflation. If you got paid $10/hr in 1929 you were doing really, really well. If you get paid $10 in 2017 you can barely make ends meet. Finally, you can't honestly believe that deflation will continue at the rate it has been with BTC forever.

This, exactly. If people just sit on it, you're creating a stagnating economy with that currency. I just wish we had a better solution than the current tx fees.