undefined | Better HN

0 pointsthinbeige8y ago0 comments

Nobody does. And this is the problem with having no inflation. Every economy needs a slight inflation, otherwise people stop consuming, instead save all their money and it gets worse => deflation.

Bitcoin equals gold, nobody uses Bitcoin to consume anything. I don't know which human behavior you refer to.

0 comments

DINKDINK8y ago

Your argument is: "Why would anyone spend any money if it's worth tomorrow?!" to support a pro-inflation argument

The counterargument / parallel reality in an inflationary world is: "Why would anyone accept any money if it's worth less tomorrow?!"

The only difference between the two paradigms is that in the later, the currency creators have the power and in the former, the currency owners have the power. It is no coincidence that the financial institution has chosen to be in control of inflation and extract the wealth first, via seignorage, of currency inflation.

dmoy8y ago

> Why would anyone accept any money if it's worth less tomorrow

I mean they sort of don't, in the case of rapid inflation. See e.g. Brazil decades ago, with payment delays abound all over.

But that's not what we're talking about for a healthy economy, with a relatively small steady inflation rate. Very different.

icebraining8y ago

Every economy needs a slight inflation, otherwise people stop consuming, instead save all their money and it gets worse => deflation.

That's the claim, where's the evidence?

ringaroundthetx8y ago

Meanwhile the bitcoin transaction bandwidth is at max capacity and is frequently at max capacity as the price rises.

People are transacting, and its not all to exchanges.

j / k navigate · click thread line to collapse