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Bitcoin is a scarcity-based currency, it's kind of a deflationary spiral, people save and don't spend their bitcoins. We desperately need a digital currency, i

• joepie91_ 13y ago
  I don't see how a deflationary currency is a problem. As far as I can tell, the only ones who benefit from the "money has to be in constant circulation" adage, is those who gain a profit off every transaction made. Money is meant to be a representative token to make trading easier; I fail to see how it makes any sense to "encourage spending" in itself.
  • maxerickson 13y ago
    A really big factor is that people get upset when the number describing their wages goes down. Businesses are also disinclined to lower their prices (this isn't a rule, sure businesses lower prices, it's a description of long term aggregate behavior). Both of those things are things that must happen for an economy to function with a deflationary currency.
    • joepie91_ 13y ago
      > A really big factor is that people get upset when the number describing their wages goes down. I doubt whether that is still the case in a (hypothetical) economy that is largely deflationary. In the current context, sure - but to me that seems largely a result of people being used to inflation, and I doubt that that association lasts if inflation is no longer the standard situation. > Businesses are also disinclined to lower their prices (this isn't a rule, sure businesses lower prices, it's a description of long term aggregate behavior). Can you elaborate on that?
• Crito 13y ago
  Dogecoin is inflationary. You can use that if you wish.