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If deflation didn't cause unemployment and the great depression, why did the collapse of the bubble lead to unemployment and the great depression? Hard money p
by JamesBarney 11y ago
If deflation didn't cause unemployment and the great depression, why did the collapse of the bubble lead to unemployment and the great depression?
Hard money prevents the Fed from changing the inflation rate but it doesn't prevent random and severe changes in inflation and deflation.
From 2010 to 2013 bitcoin had a deflation rate of 96%. Which is insane any normal economy would turn Mad Max if it had that type of deflation. If I had received a loan for my house for 100k in 2010 I would have had to repay $1.5 BILLION in 2013.
Then from 2013 to 2014 it had an inflation rate 353%. If inflation leads to bubbles and we all used bitcoin this inflation would led to the mother of all bubbles.