Post
Topic
Board Altcoin Discussion
Re: Altcoin - the alternative cryptocurrency?
by
becoin
on 06/09/2011, 16:54:49 UTC
He is obviously talking about purchasing power, not in nominal terms.
I know what he is talking about, he doesn't. If you have natural money as gold (neither inflationary nor deflationary) price of goods and services will decrease because productivity is increasing. This, however, IS NOT DEFLATION! Learn to make difference between inflation/deflation in general and MONETARY inflation/deflation! Money is just metric of value that helps exchange goods and services. This is why money should be absolutely neutral in terms of inflation or deflation. The so called money supply should be constant zero! The quantity of money in circulation should be constant! In terms of Bitcoin this is 21 million coins or 21 quadrillion units. That is it! Why is that so difficult for you to understand?

Monetary inflation is bad! Inflation is unlawful tax imposed by governments to rob their citizens!