However, in cryptocurrencies their will be some deflation. From 1840-1914 there was basically deflation overall.
From 1840-1914 there were no cryptocurrencies. How did that happen?
If interest is zero, bitcoin will far exceed dollar deflation due to lost coins.
1. How did you know a coin is lost?
2. Don't people lose dollar banknotes as well?
Inflation fans stress on the fact that inflation forces people to buy goods and services just to avoid their money devaluing on their checking accounts. They say that is good for the economy.
- 'A' produces goods and services in excess.
- 'B' produces goods and services in excess as well.
- Both 'A' and 'B' purchase goods and services of each other not because they need it but to allow their counterpart to have the funds to purchase the goods and services they don't actually need. Thus, some people say, economy will grow.
This is not a definition of economy. This isn't even a definition of a ponzi scheme. This is a definition of insanity!