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I think you are missing his point about the computer industry. If you wait, you can buy a better computer for the same amount of money as you would originally h
by geen7ea 15y ago
I think you are missing his point about the computer industry. If you wait, you can buy a better computer for the same amount of money as you would originally have. Alternatively, you could buy the same computer for less money. This is the equivalent of your money going up in value (as in you have more buying power). His argument is that if we use the author's logic, people would want to wait to get a new computer instead of buying one now. This is obviously not the case and so his argument is flawed. I agree with the poster and disagree with the author; the poster found the perfect analogy.
- dedward 15y agoIt's not flawed,it's just to narrow in scope. Deflation, when things are worth less over time, means producers have to sell MORE to make payroll, pay their bills, pay their debts - which haven't changed in value. It's great for people flush with cash - and horrible for anyone in debt. The computer industry has planned obsolescence. None of them are buying 10 years worth of parts for today's computers at projected market rates, because that would be a pile of stuff they'd ahve to eventaully sell at a loss. It's not so simple as simple analogies.... BTC is designed to be, in the true sense of the word, a trustworthy way to move value from point A to point B -and there is avery strong network effect required to make it work (or any similar currency). At a point where I know I can go somewhere, locally, and exchange my bitcoin for local currency (and some posted market rates) - I will probably start accepting using it for a few things. The concept has merit.