Quote from: neutrinox on December 14, 2013, 12:56:45 PM

Quote from: NUFCrichard on December 14, 2013, 12:33:43 PM

It is common sense, or it makes sense.

On a side note, I think that what you are saying is the main fault of a deflationary currency. Everyone hoards and never spends = no economy

I'm aware that many economists think deflation is bad because of that. But here's what I always respond:

You say nobody want's to buy due to deflation because price will be cheaper tomorrow. I say with the same logic nobody should want to sell due to inflation because price will be higher tomorrow. Yet people are selling things all the time. People are also buying massive amounts of phones and computers, even though they will be better tomorrow. In real life, very few people can afford to hoard and wait. We have needs as humans that can't be put on hold forever.

I do believe some unnecessary consumption might be cut, but some might argue that is exactly what our planet needs in order to better maintain the rising population.

I think that is a good explanation. SilkRoad was also a great counter example. People were buying there all the time for things they wanted (or "needed").

Bitcoin's properties merely make people think twice as to whether they should buy something or not. Since it is unlikely to replace all other currencies in the foreseeable future, it seems likely that any deflationary properties will be a large problem in the foreseeable future.