A little bit of deflation is a product of, and good for, economic growth. But, in the case of an economy-wide, central bank-fueled debt bubble followed by debt deflation when the bubble bursts, rapidly falling prices can go hand-in-hand with a financial crisis and recession.
Deflation isn’t bad. It is a symptom that occurs after an economy-wide, central bank-fueled debt bubble. That’s the bad part. The debt that’s not being repaid.
This takes us right back to the start of the discussion. In a crypto economy a central bank doesn’t even exist, so crypto deflation is never bad.
If you are expecting $100 and are only going to get back $50, are you happy that your purchasing power has increased and you are really getting $51 back, or are you angry that you’ve actually lost $49.
Also LOL at the change in value being $1. Bitcoin is finite, permanently, forever. 100 years from now, 1000 years from now, bitcoin will continue to deflate year after year. At least gold can be mined, although at some point we will have extracted it all. The 2% deflation in your example is an absurd underestimation. Percentages in the hundreds to thousands is more realistic.
Deflationary currency is a great way to kill an economy, there’s no motivation to invest and accept any risk when all you have to do to increase your wealth dramatically is wait, risk free. Economic activity comes to a grinding halt.
bitcoin will continue to deflate year after year. At least gold can be mined.
You know bitcoiners will still be mining for over 100 more years.
there’s no motivation to invest and accept any risk when all you have to do to increase your wealth dramatically is wait, risk free.
Another lazy myth regurgitated. You were obviously an exam crammer, not a thinker.
People choose more over less. They will still invest in risk free bonds paying an interest rate because they will end up with more money. They will still invest in risky assets for the same reason if there were no deflation. More money.
You know bitcoiners will still be mining for over 100 more years.
Technically “mining” does not end because there will always need to be more blocks if there are new transactions. Minting new coins that get awarded to miners is what ends in a bit over 100 years. And then what happens? My point stands.
Another lazy myth regurgitated. You were obviously an exam crammer, not a thinker.
It’s fact. You can’t even refute it besides desperate name calling and just stating the opposite. 😂 Sorry that reality isn’t fun for you.
When your system entirely hinges on people not considering risk… 🤣 denying that risk is a factor in risk-reward calculus because “PeOpLe WaNt MoRe” is totally convincing, big winner of an argument. They want more, and they can get more… by doing absolutely nothing… so that’s exactly what they’ll do to get the more they want. They could get more by robbing a bank or selling their kidney!!! Oh wait, that’s right, risk… 🤦
Nope nope! You’re just denying deflation exists, now?? 😂 That’ll work. This is where mental gymnastics gets you. Sad!
Well, looks like I’ve won.
Why is deflation bad?
https://www.investopedia.com/articles/personal-finance/030915/why-deflation-bad-economy.asp
https://en.m.wikipedia.org/wiki/Debt_deflation
Dude. Read what you post.
Deflation isn’t bad. It is a symptom that occurs after an economy-wide, central bank-fueled debt bubble. That’s the bad part. The debt that’s not being repaid.
This takes us right back to the start of the discussion. In a crypto economy a central bank doesn’t even exist, so crypto deflation is never bad.
Does deflation make debt easier or harder to repay? 🤔🤔🤔🤔
😂😂😂😂
If you are expecting $100 and are only going to get back $50, are you happy that your purchasing power has increased and you are really getting $51 back, or are you angry that you’ve actually lost $49.
The crisis is the default, not the deflation.
That’s not an economy.
Also LOL at the change in value being $1. Bitcoin is finite, permanently, forever. 100 years from now, 1000 years from now, bitcoin will continue to deflate year after year. At least gold can be mined, although at some point we will have extracted it all. The 2% deflation in your example is an absurd underestimation. Percentages in the hundreds to thousands is more realistic.
Deflationary currency is a great way to kill an economy, there’s no motivation to invest and accept any risk when all you have to do to increase your wealth dramatically is wait, risk free. Economic activity comes to a grinding halt.
You know bitcoiners will still be mining for over 100 more years.
Another lazy myth regurgitated. You were obviously an exam crammer, not a thinker.
People choose more over less. They will still invest in risk free bonds paying an interest rate because they will end up with more money. They will still invest in risky assets for the same reason if there were no deflation. More money.
Technically “mining” does not end because there will always need to be more blocks if there are new transactions. Minting new coins that get awarded to miners is what ends in a bit over 100 years. And then what happens? My point stands.
It’s fact. You can’t even refute it besides desperate name calling and just stating the opposite. 😂 Sorry that reality isn’t fun for you.
When your system entirely hinges on people not considering risk… 🤣 denying that risk is a factor in risk-reward calculus because “PeOpLe WaNt MoRe” is totally convincing, big winner of an argument. They want more, and they can get more… by doing absolutely nothing… so that’s exactly what they’ll do to get the more they want. They could get more by robbing a bank or selling their kidney!!! Oh wait, that’s right, risk… 🤦