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"Once the price drops to $X, I'll buy one." This is a naive view of how supply works. If fewer people are buying today this lowers the demand curve. This dec
by Steko 13y ago
"Once the price drops to $X, I'll buy one."
This is a naive view of how supply works. If fewer people are buying today this lowers the demand curve. This decreases the amount of the good that will be produced in the first place. You don't get a chance to buy those lost phones later because they never got made.
- clarkm 13y agoYes, but the standard supply and demand model makes assumptions about the nature of money markets that I don't think apply in this case, which is why I'm confused. Bitcoin has some unique features (e.g. non-repudiable "teleporting") that aren't normally considered -- Econ 101 assumptions prove too little. However, this doesn't take a deflationary death spiral off the table. It could easily be Bitcoin's downfall, I just think other things are more likely.
- dnautics 13y ago...And this whole time I thought supply-side conservative economics was all about propping up and subsidizing the holders of capital.