4 ms·

That frequency is small because the central bank targets an inflation rate of about 1-2% (and does so by pumping currency into the market, more or less). This d

That frequency is small because the central bank targets an inflation rate of about 1-2% (and does so by pumping currency into the market, more or less). This does two things: makes it not worth it to save your money, and makes it not worth it to invest it it anything with less than a -1% yield (unless it is a good or service of some kind). So you’ve not answered the questions of “why would I spend this currency on _anything_, including other investments, if holding onto it is the best investment out there?” And how does bitcoin not consistently stay in a deflationary spiral?

baddox 9y ago
> why would I spend this currency on _anything_, including other investments, if holding onto it is the best investment out there? Different people value different things differently, thus there is no universal agreement on what the “best investment” is. Remember that the price of Bitcoin cannot change without both a seller and a buyer. Each bitcoin bought is a bitcoin sold. The most obvious and simplistic example of a reason people might sell Bitcoins right now is that they are hungry and want food, but that generalizes to more complex differences between individuals’ time discount functions.