Post
Topic
Board Bitcoin Discussion
Re: I was asked a tough question, who can help me answer?
by
BitVapes
on 21/07/2011, 09:34:02 UTC
If Bitcoin is a currency with deflation property, that means BTC has to be appreciated (which in reality means BTC is a fancy collectible)

Therefore a rational BTC user will hold BTC rather than spend it.

but if no one spend BTC, then what's the point of such a currency?

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who can help me find out the fallacies in this reasoning? thank you!

This is the 'deflationary spiral' argument which the wiki covers. 

The deflation vs inflation argument has been going on between economists for a long time before bitcoin.