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> there can be no circumstance that changes the fact that Bitcoin only ever has 21 million units and cannot ever be inflated Yes it is deflationary, which is w
by dmitrygr 4y ago
> there can be no circumstance that changes the fact that Bitcoin only ever has 21 million units and cannot ever be inflated
Yes it is deflationary, which is worse for a currency. Why buy anything with a currency whose value will always rise? Better to just hold it. Thus it fails as a currency
- logicalmonster 4y ago> Yes it is deflationary, which is worse for a currency. Cui bono? Who told you that deflationary currencies are inherently bad? Perhaps you're repeating this lesson from central bankers and politicians who would have no ability to manipulate for power if they didn't have the printing press. > Why buy anything with a currency whose value will always rise? Better to just hold it. Thus it fails as a currency IMO, this has always been a dumb criticism of a deflationary setting. People still save their money in an inflationary setting and will also spend during deflation because people still need to eat and live their lives. Certainly people would tend to be more cautious about their spending during deflation: not inherently a bad thing.
- dmitrygr 4y ago> Perhaps you're repeating this lesson from central bankers Yup. That’s what they taught me at the secret anti-buttcoin training camp. (Or it could be that I studied economics, who knows?)
- logicalmonster 4y agoI'm going to ignore the other comment, but I'd be curious about which school of economic thought you learned from. Care to share? It's not hard to see why a Keynesian for instance might be against a deflationary environment.