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Your argument only holds if your time discounting factor is greater than the rate of deflation. In the case of Bitcoin this is clearly not the case since prices
by pyduan 13y ago
Your argument only holds if your time discounting factor is greater than the rate of deflation. In the case of Bitcoin this is clearly not the case since prices can double overnight, unless you're arguing that you're so adverse to waiting that you'd rather purchase something today than tomorrow at half price.
- jwallaceparker 13y agoI'm just talking about deflation in general. Bitcoin is a new phenomenon but the 'fear of deflation' argument has been used by monetarists for decades. Bitcoin is hardly viable as a unit of account at this point. It's a speculative investment at the moment.