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But if your rent is X BTC/mo how does the BTC relation to USD change your rent or make you go hungry? A 0.0001BTC sandwitch will be 0.0001BTC tomorrow as well.

But if your rent is X BTC/mo how does the BTC relation to USD change your rent or make you go hungry? A 0.0001BTC sandwitch will be 0.0001BTC tomorrow as well. What we have here is people using bitcoin as proxy for other currencies.

UncleMeat 5y ago
I find it very funny that BTC advocates bring this up all the time, yet inflation of USD is considered to be an enormous threat. Surely both of these things cannot be true.
- nextlevelwizard 5y ago
  I am not advocate for Bitcoin, but I assume prices in BTC would raise with inflation like any other currency
  - ninetenfour 5y ago
    BTC is designed to be highly limited in supply and thus all prices denominated in BTC should drop over time by design of the currency. Everything else in society, if it was all on BTC, would do similarly. Basically your salary this year should be smaller than it was last year but your buying power should be similar. This encourages people to hold BTC because its relative value increases over time. Thus BTC by being deflationary encourages holding and not spending. It will lead to a less dynamic economy than if we had an inflationary currency which encouraged spending/investment.
    - nextlevelwizard 5y ago
      The thing is that to be actual currency BTC can not be limited forever. Think about it for a moment. Every year BTC gets stolen and will continue to be stolen and it will only increase if it was "the world currency" thus limiting the supply ever more. Then people hoarding it will die and passwords to their wallets will be regularly forgotten again limiting the supply sooner or later we will be at a point where even 1 satoshi is so valuable you can not use it for daily purchases. This scheme also effectively fucks over the future generations since older generations had the opportunity to hoard wealth while they were earning couple BTCs each month, but then future generations will be only earning couple hundred satoshis. If you think property prices are now out of hand just think what happens when about half the population has effectively millions of dollars in inheritance. If your parents fucked up and didn't leave you any of the family fortune you are just screwed with no way to recover. Or if they died in an accident and their bitcoin wallets were now locked forever.

UncleMeat 5y ago

I find it very funny that BTC advocates bring this up all the time, yet inflation of USD is considered to be an enormous threat. Surely both of these things cannot be true.

nextlevelwizard 5y ago
I am not advocate for Bitcoin, but I assume prices in BTC would raise with inflation like any other currency
- ninetenfour 5y ago
  BTC is designed to be highly limited in supply and thus all prices denominated in BTC should drop over time by design of the currency. Everything else in society, if it was all on BTC, would do similarly. Basically your salary this year should be smaller than it was last year but your buying power should be similar. This encourages people to hold BTC because its relative value increases over time. Thus BTC by being deflationary encourages holding and not spending. It will lead to a less dynamic economy than if we had an inflationary currency which encouraged spending/investment.
  - nextlevelwizard 5y ago
    The thing is that to be actual currency BTC can not be limited forever. Think about it for a moment. Every year BTC gets stolen and will continue to be stolen and it will only increase if it was "the world currency" thus limiting the supply ever more. Then people hoarding it will die and passwords to their wallets will be regularly forgotten again limiting the supply sooner or later we will be at a point where even 1 satoshi is so valuable you can not use it for daily purchases. This scheme also effectively fucks over the future generations since older generations had the opportunity to hoard wealth while they were earning couple BTCs each month, but then future generations will be only earning couple hundred satoshis. If you think property prices are now out of hand just think what happens when about half the population has effectively millions of dollars in inheritance. If your parents fucked up and didn't leave you any of the family fortune you are just screwed with no way to recover. Or if they died in an accident and their bitcoin wallets were now locked forever.