Post
Topic
Board Economics
Re: Why bitcoins are dropping, and will continue to do so
by
evoorhees
on 18/07/2011, 15:39:24 UTC

Welcome to deflationary economics 101.


That's why none of us buy computer equipment. We all know we'll get twice the power at half the price in 6 months. I'm still on an Apple II and one of those old Nokia cell phones from 1998. Clearly, deflation ruins economic progress.

PS- Bitcoin is not deflationary, regardless. It's asymptotically inflationary. It's only deflationary if people lose/misplace wallet files faster than the new currency is minted. In fact, BTC is much more inflationary that USD right now.