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I believe that economists generally think that a small amount of inflation is good for the economy, and that deflation is bad (because it leads to reductions in
by kybernetikos 3y ago
I believe that economists generally think that a small amount of inflation is good for the economy, and that deflation is bad (because it leads to reductions in spending and investment, potentially causing a vicious circle). It's also relatively easy to counteract - just print more. In order for hyperdeflation to occur you'd need a currency where the issuing body didn't believe deflation was bad, or didn't care.
- kemotep 3y agoBitcoin has a hyper deflationary monetary policy hard coded in.
- deleted 3y ago[deleted]
- Sohcahtoa82 3y agoYup, and as a result, nobody wants to actually treat it as the digital currency that it was originally set out to be. Anybody who truly thinks Bitcoin could hit $100K value certainly doesn't want to spend them.