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Currency that is guaranteed to be deflationary sure has its problems. But taking ideology and using it for every day stuff aside, why wouldn't you want to own s
by comboy 8y ago
Currency that is guaranteed to be deflationary sure has its problems. But taking ideology and using it for every day stuff aside, why wouldn't you want to own some?
- kristjansson 8y agoExactly: own some. Not spend some, hence the problem with using it as a currency.
- amatic 8y agoI'm not sure that is a real problem. You own some, then when you want to spend, you spend. The fact that it is deflationary means you might postpone your purchase, but ultimately, you will need to eat/travel/etc more than you need to "own" currency. Or are there other problems?
- deleted 8y ago[deleted]
- crististm 8y agoPardon my french but what the fuck do you do with a number that you "own"? The whole point of a currency is to be spent as opposed to be "owned".
- kristjansson 8y agoThe issue is that, in a smoothly deflating currency, all but the most essential consumption will be postponed indefinitely, as will investment of that currency in anything that expects to return less than the rate of deflation. This is bad for an economy denominated entirely in that currency, as the deduction in economic activity can increase the rate of deflation, which reduces economic activity further, and so on. Obviously bitcoin is not the primary currency for any economy, so the feedback effect isn't a concern, but the deflationary pressure is (per TFA) reducing actual economic activity denominated in bitcoin.
- pjc50 8y ago... why would you?