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> If it's better to hoard currency so you can buy 10% more things next year, everyone starts hoarding currency But they don't. Not if it's things they need now
by tom_mellior 5y ago
> If it's better to hoard currency so you can buy 10% more things next year, everyone starts hoarding currency
But they don't. Not if it's things they need now, like food, or want now: electronics have been deflationary for the last 70 years or so -- when you bought the device you typed your comment on, you knew full well that a year later you would get a better one for cheaper, and yet you didn't hoard your currency. Trade in electronics doesn't seem to be grinding to a halt.
Useless crap people don't actually need? Sure, that might suffer from deflation. But ideally the world economy wouldn't be founded on useless crap that people don't actually need.
Stake: Held some Bitcoin ca. 2011-2021, just enough to buy a nice (not fancy) apartment slightly below market price. Divested now. Miniscule amounts of Monero and Tezos, basically written off.
- Weebs 5y agoI would even argue that it's a good thing in our current environment that we don't facilitate trade for things that aren't needed. Much of the arguments of deflation seem to rely on an economy that has maintained high and ideally growing output, while we live in a world of resources being depleted due to inefficient use and failure to reign externalities.