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Slightly off-topic, but I don't understand how a deflationary currency could be practical. Why would you ever spend it, except begrudgingly, if whatever you buy

by nilkn 13y ago

Slightly off-topic, but I don't understand how a deflationary currency could be practical. Why would you ever spend it, except begrudgingly, if whatever you buy will be worth less tomorrow (thinking exclusively "in bitcoin," without regard to other currencies)? This is a question, not a criticism.

eurleif 13y ago
Why would you spend your USD if you can convert it to BTC instead and it will be worth more tomorrow?
- deleted 13y ago
  [deleted]
randartie 13y ago
The idea is that it will become stable.
darkFunction 13y ago
Spend when you need or really want something. Maybe the rampant consumerism associated with an inflationary currency is actually wasteful and destructive to the planet.
- SkyMarshal 13y ago
  That's my thought too. Spend either when you really need something, or only things that appreciate rather than depreciate - home/real estate (barring housing bubbles), education, home manufacturing (3D printing), business investments, etc. Less on planned-obsolete cheap junk.
crystaln 13y ago
When you want something. A deflationary currency isn't much different from owning stock. Imagine you own $1000 in stock and want a TV. Would you ever sell to buy? Of course.
- nilkn 13y ago
  It sort of makes sense. I suppose, in my naive understanding, that it would somewhat reverse the current situation. Right now, you invest by buying stocks, bonds, etc., because cash loses value over time and stocks hopefully gain value. If we all used bitcoin, though, then you could viably "invest" by simply saving your bitcoins. The currency itself would be the investment rather than something else. Obviously, though, you'd still have to spend money in order to acquire anything. I'm really out of my depth economically here, but couldn't this inadvertently lead to a sharp drop in general investment in publicly traded companies?
gnaritas 13y ago
> Slightly off-topic, but I don't understand how a deflationary currency could be practical. It can't.

by nilkn 13y ago

eurleif 13y ago

Why would you spend your USD if you can convert it to BTC instead and it will be worth more tomorrow?

deleted 13y ago
[deleted]

randartie 13y ago

The idea is that it will become stable.

darkFunction 13y ago

Spend when you need or really want something. Maybe the rampant consumerism associated with an inflationary currency is actually wasteful and destructive to the planet.

SkyMarshal 13y ago
That's my thought too. Spend either when you really need something, or only things that appreciate rather than depreciate - home/real estate (barring housing bubbles), education, home manufacturing (3D printing), business investments, etc. Less on planned-obsolete cheap junk.

crystaln 13y ago

When you want something. A deflationary currency isn't much different from owning stock. Imagine you own $1000 in stock and want a TV. Would you ever sell to buy? Of course.

nilkn 13y ago
It sort of makes sense. I suppose, in my naive understanding, that it would somewhat reverse the current situation. Right now, you invest by buying stocks, bonds, etc., because cash loses value over time and stocks hopefully gain value. If we all used bitcoin, though, then you could viably "invest" by simply saving your bitcoins. The currency itself would be the investment rather than something else. Obviously, though, you'd still have to spend money in order to acquire anything. I'm really out of my depth economically here, but couldn't this inadvertently lead to a sharp drop in general investment in publicly traded companies?

gnaritas 13y ago

> Slightly off-topic, but I don't understand how a deflationary currency could be practical. It can't.