Quote from: Ix on February 07, 2014, 06:09:23 AM

Quote from: zipmaster on February 07, 2014, 05:18:26 AM

As a result, as currency deflates, the ultra rich find themselves holding excess wealth whose utility is of small effective value.

How can you think that when there is evidence all around us of what "ultra rich" do? They control media and therefore public opinion, they control government and therefore public policy. When quality of life is no longer an issue, it becomes about power. There is no magic spell that makes this work differently in bitcoin. If ultra rich are induced to spend more, what do they spend it on?

I agree with you LX. The one difference here though is that the ultra rich cannot hoard by taking advantage of special federal reserve-type handouts. They start with an immense amount of wealth that, through deflation, grows in value over time. This implies that anything they spend will ultimately be more useful to the worker over time than to them. Unless they can manipulate the price of bitcoin en-masse to buy it back at a lower price, the worker will be getting paid with something that guarantees greater value over time.

Deflation pushes the ultra-rich utility curve to flatten out and, as a result, they should spend more. What will the spend more on? Obtaining power is a very good guess. The big difference is that this will most likely be political power as opposed to financial power since there won't be any currency to manipulate.

I guess the main point I'm trying to hone in on is the following:
A) How much power is effectively a result of the manipulation of a currency's value?
B) How much can bitcoin be actively manipulated by the bitcoin ultra rich in a hypothetical bitcoin economy?