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> they say that the fact that it is deflationary and can not see inflation is a good thing, when it is actually a bad thing. There is a reason the target inflat
by rhacker 6y ago
> they say that the fact that it is deflationary and can not see inflation is a good thing, when it is actually a bad thing. There is a reason the target inflation is at ~2% almost everywhere. We need inflation to keep the economy going.
I don't doubt that at some point we'll see crypto getting a self-deleting coin. Balance today is $1. Tomorrow it's $.9995.
- rsynnott 6y agoMoney that encourages people to spend it has already been thought of: http://www.larryniven.net/stories/roentgen.shtml http://www.larryniven.net/stories/roentgen.shtml
- oleganza 6y agoYou know what also encourages spending? Appreciating currency that lets you save money over N days to buy N*$ expensive stuff all by yourself (e.g. start your business) without getting into debt and serving your creditors instead of yourself and your customers.
- rsynnott 6y agoThis feels a bit like "common sense/stands to reason" thinking. In reality, of course, periods of deflation are typically very bad for businesses, particularly small businesses.
- oleganza 6y agoI guess we are talking about different deflations. If the prices fall because economy crashed (e.g. due to an inflated credit bubble beforehand) and now everyone is without spare cash and broken/useless production chains, then sure - no one is buying stuff because life is miserable. But if the prices fall because everyone's savings exist and appreciate, then arguably, people can afford more things tomorrow than yesterday, which could only cause them to spend and invest more. Rising prices due to monetary inflation only "stimulate economy" (whatever it means) on a short distance while people have money to spend and are forced to get rid of it for something more useful. But that's not a sustainable game.
- WanderPanda 6y agoIssued by FED ECB etc (thats what they already do with their non blockchain “tokens” ;) )