Quote from: Etlase2 on December 28, 2013, 10:11:54 PM

Quote from: solex on December 28, 2013, 10:08:16 PM

This is a fallacy. People will always buy what they need, which puts a floor under any deflationary spiral. In the current system people are encouraged to consume for the sake of consumption, buying what they don't need, and worse, borrowing to do it. With a sound monetary system borrowing would be done for purposes of new and increased production - driven by legitimate market forces (not excessive FRB and CB-spiked money creation).

Further. Bitcoin is not even a deflationary currency. It just inflates at a smaller and smaller rate. The inflation rate in Bitcoin right now is about 11%, which is larger than any real GDP growth! Eventually it will be less than real GDP growth, but even then, lower prices and wages will not reduce living standards.

All you are doing is thumping on the same bitcoin bible. People can't buy what they need if they don't have jobs. Consumerism, as I stated, is mostly irrelevant and is only good for distracting from the real topic regarding what effects deflation will have on investment and job creation. And arguing about what the word deflation means is the typical bitcoinomics cherry on top.

This is a modern myth as well. There are other means to an income than what might be called a "job". A great many people still make their own way in this country without ever submitting to an hourly wage. This is a small minority of people, mind you, but a much larger minority of people are well accustomed to earning some portion of their income outside of the hourly wage paradigm. Furthermore, what he says is technically true, Bitcoin won't be remotely deflationary within any of our expected natural lifespans. It's dramatic price increases are due entirely to a speculative assumption of future economic growth upon a fairl ridgid monetary base, but one that isn't properly called deflationary. This is a growth stage, not a feature of Bitcoin itself.