Quote from: jseverson on January 31, 2018, 09:19:59 AM

Quote from: odolvlobo on January 31, 2018, 12:40:29 AM

You could also ask:

Can an inflationary currency really work?

What are the incentives to save or lend your money if it always goes down in value? Does this not stunt economic growth?

Well it's working at the moment. Fiat is inflationary by design precisely to discourage hoarding money and to spur spending, which apparently promotes economic growth. The system is built around it after all. How long it will continue to work is anyone's guess though.

It's hard to imagine how a deflationary currency will work because it goes against the principle of world economy at the moment. There could be a "rich effect" though, where peoples' wealth start growing, and they, in turn, start spending more and more. This phenomenon was observed in Japan recently. Either way, deflation is the least of Bitcoin's worries right now.

This is an interesting thread with some very good posts and points to consider.
It would in fact seem that a deflationary currency cannot work but the point above about the "rich effect" is interesting.
If Bitcoin is constantly rising, in theory it would make sense to spend it because as it rises you have to spend less for the same product/service
Would that figure correctly?