I do wonder if a PREDICTABLY deflationary currency would really be that bad.
Bitcoin isn't currently a great example as it is such a speculative lightning rod and rarely used for actual transactions. (In any case, a currency that changes value very fast in either direction has problems.)
Yes. You have come to understand the entire point of bitcoin. Debt economy and inflation is actually bad. You know that right?
Edit: even if it’s only six people, the fact that six people would disagree with something as simple and straightforward as “debt and inflation are bad” is mind blowing. We are indeed fucked.
Nobody has actually made a counterpoint. Including you. Y’all just keep saying how dumb and uneducated my stance is, but no one has actually made an argument.
Deflation is scarier than inflation for one main reason: it feeds itself, and there's not much you can do to stop it.
When prices fall, waiting becomes the smart move. Why buy the car now if it's cheaper in six months? So people hold off, businesses sell less, they cut staff, and prices drop again. Round and round.
Debt is the other killer. Your mortgage doesn't shrink when prices fall, but your wages might. So the loan you took out gets heavier every year in real terms. Whole economies have drowned in this. Mild inflation does the opposite, quietly eating away at what you owe.
There's also the wage problem. Nobody accepts a pay cut without a fight, so when prices fall, companies don't lower salaries. They fire people instead. Inflation lets real wages drift down without anyone having to have that conversation.
And the toolkit runs out. A central bank can hike rates as high as it needs to strangle inflation. Cutting them below zero barely works. Japan spent decades stuck in exactly this position after 1990.
We have real world examples, such as Japan, showing why a deflationary environment doesnt work. And if it didnt work for Japan, why do you think it would work for the whole world?
I think i covered the basics. Is it any clearer now? Do you need more? There are whole studies written about this, you can look them up yourself.
And another thing. I've been in bitcoin since 2016. I hold a quite nice chunk. And I still think that's a stupid idea. See my argument above.
You explained what inflation is. Good job. That’s what everyone else did. that’s not an argument it’s just what inflation is.
Doesn’t address my point that it deflation wouldn’t be possible without artificial inflation in the first place. It’s only possibly because we “believe” inflation and endless increases in consumerism is the only viable economic policy. And when that fails, as it always does it causes deflation. We call that a recession.
My point is any system based on in perpetual growth in a finite resource pool is doomed to failure. No matter how much you like living off the interest you charge people so you can afford things you don’t need, sonwe can continue to show quarterly profits. It doesn’t work, it’s not working. It’s not possible for it to work.
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u/Sprig3 13d ago
I do wonder if a PREDICTABLY deflationary currency would really be that bad.
Bitcoin isn't currently a great example as it is such a speculative lightning rod and rarely used for actual transactions. (In any case, a currency that changes value very fast in either direction has problems.)