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That's a problem for a currency, no ? You are in effect rewarded for no spending it, or in other word not using it as a currency. Seems like Bitcoin is instead
by gutnor 13y ago
That's a problem for a currency, no ? You are in effect rewarded for no spending it, or in other word not using it as a currency.
Seems like Bitcoin is instead becoming a new class of asset rather than a currency.
- SkyMarshal 13y agoIt was in the past, in less dynamic, less connected, less 'always on' economies. We've never seen what a deflationary currency will do in a modern, wired, 'speed-of-light/electricity' economy though. It could lead to increased capital formation (savings) and less frivolous spending, eg spending only on necessities and appreciating assets, and less on throwaway, planned obsolete junk, while still maintaining enough velocity not to stall the economy. Leaner but still viable. Of course, getting from here to there will not be painless. Who knows, jury's still out on it imho, will have to watch and see. Front-row seats to one of the greatest economic experiments of history, for better or worse.
- wyager 13y agoIt simply changes how much people are willing to spend. The question becomes "Does buying this thing now have more utility to me than having several times this thing's value in a few years?" The answer is sometimes "yes".