4 ms·
It is interesting how the deflation argument is always raised when talking about Bitcoin. Sure, deflation is an "economic carcinogen" in the current financial s
by ghgr 14y ago
It is interesting how the deflation argument is always raised when talking about Bitcoin. Sure, deflation is an "economic carcinogen" in the current financial system (which is inevitably tied to the currency specs), but it won't be a problem in a Bitcoin world. Let me show an example:
Imagine I need to buy a house. Today, I would go to the bank, ask them for money and they will give it to me under the condition of giving it back, plus inflation, plus a fee. I need to give back more money than I received in order to pay the government (inflation) and the 'professional' lender (fee), for their 'services'.
In a Bitcoin world, if I needed to buy a house, I have two choices: Pay it now, if I have enough money (exactly as today) or pay it later (in several installments). As simple as that. Then, the housing market will decide if this is acceptable or not, or how much time the seller is willing to wait. The only difference is that in the Bitcoin world the "professional" lender will cease to exist (the seller will be at the same time the lender). And since there is no inflation, I will not need to pay the government either.
Actually it would be much easier to buy a house.