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by that logic people would not buy TVs or memory cards
by jsbg 2y ago
by that logic people would not buy TVs or memory cards
- lesuorac 2y agoErrr, by their logic people wouldn't use TVs or memory cards as "cash". Which they don't.
- kragen 2y agoTVs and memory cards keep getting cheaper, not more expensive.
- jsbg 2y agoyes, that is what deflation is
- kragen 2y agoThe deflation of a currency is when the currency gets more expensive, not cheaper. It's true that other goods get cheaper when measured in that currency. But what we're discussing here is whether, and how, the continued deflation of Bitcoin discourages its use as a medium of exchange, not whether some hypothetical deflation of the dollar would discourage the use of other goods such as memory cards and Bitcoin as a medium of exchange.
- itsoktocry 2y ago>The deflation of a currency is when the currency gets more expensive, not cheaper. This is a perversion of the economic definition of inflation and deflation. Inflation is the rate of change of prices.
- kragen 2y agoThese are two different ways of looking at the same thing, but the crucial issue here is the direction of inflation: inflation is when prices, measured in the currency in question, go up, not down. That is to say, the value of the currency, measured in terms of any given good, goes down, not up. jsbg was getting this backwards, and your comment isn't helpful in clarifying their confused thinking. Historically speaking, the "printing too much paper money" definition of "inflation", which is more or less what you're saying is "a perversion of the economic definition of inflation", preceded the "general increase in prices" definition you're talking about: https://en.wikipedia.org/wiki/Inflation#Classical_economics https://en.wikipedia.org/wiki/Inflation#Classical_economics
- lottin 2y agoDeflation is a fall in the general price level. A fall in the price of some goods or of a particular good is not deflation.
- bawolff 2y agoMy logic is not that people won't but memory cards, but that they won't replace usd as a medium of exchange. As far as i am aware nobody uses memory cards as a medium of exchange so looks like my logic holds.