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!
Please explain how using gold as money automagically increases productivity and how it is neither inflationary nor deflationary.
Learn to make difference between inflation/deflation in general and MONETARY inflation/deflation!
Or maybe you should learn that the terms inflation and deflation only refer to the level of prices and what you refer as "monetary inflation/deflation" is actually called money supply expansion/contraction.
JD - The only way you can convince them of this is to take the "inflation" out of the argument. Demurrage is not in fact inflation, it is in fact an implementation of fixed currency size with nominal inflationary properties. This style of coin would also see deflation as the adoption and usage rates go up, a portion of this deflation would be offset by Demurrage. Once, people realize this the argument against it being an inflationary currency can be chucked out the window. And *one of* the biggest advantages is that it is a simple mechanism to reclaim lost coins in the system. Another "one of" the biggest advantages is that it keeps the miners sufficiently compensated when the current other chains will fall off after new coin generation falls by the way side.
Yeah, you are right.