Quote from: iwillhodl on January 30, 2018, 06:45:01 AM

Quote from: mrcash02 on January 30, 2018, 04:41:10 AM

I can be saying something wrong, but isn't deflation a good thing? Let's think from the point of view it just makes things balanced, it's a natural event that shows the market what is needed and what isn't needed anymore on the market... So you won't produce something that others are already producing, you will have to find a new product/sector to work with.

In my opinion what isn't a solution is to incentive people to spend more money than they have and to incentive the population increasement without control (common weapons to beat deflation). What do you think?

Deflation in fiat money makes more people save money instead of investing. Why should millionaire invest money in any business, when value of his money is growing for nothing? It causes worse economics in country when no one is investing, and when we go further, prices will go up instead of falling long term in deflation what will make more people poor. Very low inflation is also very good for any country. It's about money used everyday and about masses.

Ok, but what makes people save money instead of investing? Where does the problem start?

Quote from: iwillhodl on January 30, 2018, 06:45:01 AM

But when we talk about value holder, like gold or btc (this is how I treat btc at this moment with this price and those fees, value holder) deflation is good because everyone wants to buy and no one wants to sell, there is no way to create it and it makes price to rise. So inflation can be bad or good, same deflation, depends on currency we use and the way we treat it, spendable money or value holders.

So you are saying in asset's market the deflation pushes prices down, but it's fastly pushed up again as the number of buyers (demand) increase instantly and the disponible coins (supply) is limited. Different from real economies, deflation doesn't break asset's market.

Then the problem isn't deflation itself, right? The problem is that people don't have interest in buying or investing on their local businesses and stuff when the prices go down for any other reason.