Quote from: hatshepsut93 on March 02, 2021, 04:52:09 PM

Assuming BTC rise would create a lot of millionaires, why should it increase the price of consumer goods? Will these millionaires rush to hoard bread and eggs? I can only see increased demand for luxury goods, so the general population will not be affected.

In the first stage no, in the second and third one, you're going to see them increase for sure.

Assuming that Bitcoin hits the million mark and people start cashing it out, either in fiat or goods, you will see demand for luxury goods and services that currently don't have that many customers so you need to increase supply. Once people need more valet parking Grin

gardners and babysitters then you will have to pay those people more, them making more money means they can afford more goods, driving up the demand and as a rolling wave supplying the last class with more income.

And then we have the manufacturers themselves since luxury products are in demand many will switch production to those following the profit margin, it makes no sense to sell raw meat when you can smoke it, and even if it cost you 5$ more you can sell it for ten times the profit, leaving the ones providing basic goods with same if not increased demand but less offer.

And I can give you an example in real life that happened here, during the crisis we had a drop in orders from food processors for 1st and 2dn quality meat and more demand for MDM meat (not as bad as you might think but still disgusting stuff), as the economy recovered again we had an increase in demand for raw meat to the point even junk parts were sold to over 50% the price, and you shouldn't underestimate the number of people that would buy far more basic goods if they would have the money, and the production can't keep with that, you can't plant 1million ha or breed 1 million pigs overnight.
If suddenly in every town new chich restaurant is buying all the eggs in town for 2$ a piece as it sells a "gateau du moron" to new millionaires Grin

for 500$ this will definitely impact the price even for the guy who barely pays his rent.