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> If the currency under consideration has wide spread adoption, deflation means a system-wide slowdown in investment (_averaged_). The computer industry is def
by dpatru 13y ago
> If the currency under consideration has wide spread adoption, deflation means a system-wide slowdown in investment (_averaged_).
The computer industry is deflationary. All you have to do to be able to buy more computing power is wait. Yet, somehow, investment in computers keeps happening.
Just because money is increasing in value, doesn't mean that demand for money goes away. Just the opposite in fact. A money that increases in value is more valuable and thus more in demand.
Since the only (legitimate) way to get money is to earn it by labor or investment, it seems that either labor or investment or both will increase as money becomes more valuable.