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When a currency is experiencing deflation it makes sense not to spend it. In that world, keeping my money under my mattress is the soundest investment strategy

• kurtko 14y ago
  Correct, but how certain are you that it will continue to deflate? It has already once lost 90% of its value in a short period after a parabolic rise. Could it not do that again?
• shawabawa3 14y ago
  > Why would I buy anything with my bitcoins if a week from now they're going to be work X% more? I'd just wait until then. If you believe this, then surely you also believe you should invest 100% of your money in bitcoins? If not, then you believe only X% of your money should be invested in bitcoins (to avoid the risk of losing everything in a collapse) Therefore if you have >X% of your money in bitcoins, you should spend some.
• dnaquin 14y ago
  > When a currency is experiencing deflation it makes sense not to spend it. In that world, keeping my money under my mattress is the soundest investment strategy. A does not imply B. If the currency deflates at 1% but you could invest at 2%, your mattress isn't the most sound investment strategy.
  • dyno12345 14y ago
    Bitcoin is deflating at a far greater rate than you could make investing without some kind of extremely leveraged scheme.