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0 pointslancemurdock4y ago0 comments

Deflationary currency would be a nightmare because some cohort would become very wealthy? I am not sure those two thoughts are connected.

Deflation is not a bad thing for the end consumer. Our purchasing power should be going up over time as advancements/efficiencies in technology, shipping, healthcare create more for less.

Deflation is "bad" in our current system because we have so much debt that isn't backed by much collateral. Interest rates rise putting a hold on businesses that don't produce much and creates an endless domino effect

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randomopining4y ago

How is an entity encouraged to take on entrepreneurial risk in a deflationary environment?

If you have a lot of capital, it literally gains value by just sitting there.

Less incentive to use it.

Only people who benefit are those that have a lot to begin with (obtain more value by doing nothing).

emodendroket4y ago

That's not what I said, is it? It would be great if you happen to have a bunch of Bitcoins. For everyone else it would be a nightmare because it would encourage disinvestment. Why take a risk when you can literally just sit on your money? Loans would also become pretty much unfeasible both for business purposes and for consumers (hope you can buy a house with cash).

lancemurdockOP4y ago

"Hodling" is certainly part of the culture but it wont be as more services get rolled out. Look at the volume on exchanges, people move coins around, stake them, or even loan them out for APY rates.

Loans would not become unfeasible, but they would be extremely reduced to people who can pay them back. That encourages healthy financial investment. It also encourages business to focus on profitability instead of raising the next round.

Whether its Bitcoin/Ethereum/Gold/Silver or something else, a thriving financial system must be backed by something finite or an extremely controlled and low inflation rate. Thats not an opinion, thats a fact. Cash or StableCoins could still be issued and backed by something like Bitcoin or has its been done in the past with Gold.

emodendroket4y ago

> Whether its Bitcoin/Ethereum/Gold/Silver or something else, a thriving financial system must be backed by something finite or an extremely controlled and low inflation rate. Thats not an opinion, thats a fact.

I think most people would be surprised to learn that the US financial system is "unsuccessful." It certainly sounds a lot like your unsubstantiated opinion.

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0 pointslancemurdock4y ago0 comments

Deflationary currency would be a nightmare because some cohort would become very wealthy? I am not sure those two thoughts are connected.

Deflation is not a bad thing for the end consumer. Our purchasing power should be going up over time as advancements/efficiencies in technology, shipping, healthcare create more for less.

0 comments

randomopining4y ago

How is an entity encouraged to take on entrepreneurial risk in a deflationary environment?

If you have a lot of capital, it literally gains value by just sitting there.

Less incentive to use it.

Only people who benefit are those that have a lot to begin with (obtain more value by doing nothing).

emodendroket4y ago

lancemurdockOP4y ago

"Hodling" is certainly part of the culture but it wont be as more services get rolled out. Look at the volume on exchanges, people move coins around, stake them, or even loan them out for APY rates.

emodendroket4y ago

I think most people would be surprised to learn that the US financial system is "unsuccessful." It certainly sounds a lot like your unsubstantiated opinion.

j / k navigate · click thread line to collapse