Somebody give me a good argument against this

Somebody give me a good argument against this.

Why Bitcoin won't actually work as a currency: It's deflationary

That means there's no incentive to spend Bitcoin on products because you gain more from hoarding Bitcoin than spending it. People spend USD because inflation causes USD to lose value over time, if it gained value people would hoard cash as much as possible.

Bitcoin is the equivalent of digital gold, not a digital currency. Bitcoin will never be used worldwide to buy products at your local stores or online.

The reason you buy that new car, that new computer, those nice clothes is not because you're afraid fiat is gonna lose value.

It's because you've been brainfucked by capitalism to be a consumer and to always need more.

Ok, but would you admit that Bitcoin's deflationary nature encourages hoarding and discourages spending? How is deflation being inherently built into Bitcoin a good thing?

That's why bitcoin will be the daddy coin which acts as the store of value while alt coins willl be used for day to day transactions.

In London there's already a property firm selling houses in bitcoin cause gains from holding coin is more than gains from holding real estate

Ok, then why are there people saying stuff like "Satoshi's vision is that people across the world use Bitcoin to buy a cup of coffee"

BTC is spent OP, the question is, where?
What do people who spend BTC use it on?

Does anyone remember when Backpage came under fire a few years and the credit card companies withdrew support? The only way to pay for ads in Adult Entertainment section was to spend BTC.
Keep asking questions OP; adult entertainment doesn't even scratch the surface.

yeah if I get rich with bitcoin I'm gonna keep living my shitty lifestyle and never spend any of it

Lol most people don't even understand what causes inflation.

People send money because it feels good.

>Bitcoin will never be used worldwide to buy products at your local stores or online

Most people that have done their research into cryptocurrency know that. Bitcoin is to cryptocurrency as sticks is to Fiat. It's just the start of something bigger.

Satoshi had that vision; it doesn't mean that the exact bitcoin protocol he wrote would satisfy it. The concept of a distributed ledger will allow cryptocurrencies to be developed that are efficient enough for people to buy coffee in just that way.

It is difficult for decentralized technology to match centralized technology in terms of speed, but the smartest developers and mathematicians in the world are attacking this problem and making progress every month. Have you fucking seen how fast Ethereum transaction times are?

Bitcoin was never meant to be a currency. It was only meant for transactions and then paranoid autists commandeered it as some kind of anti-establishment tool.

you're saying even if gold could be sent through the internet, it wouldn't be used for purchasing things? why not?

deflation is irrelevant. before bitcoin, people already hoarded money in deflationary assets. that's what investing is. people buy stocks because they expect demand to outpace supply. yet our economy still works, somehow

>"but that investment contributes to capital growth in the company
same thing with people who hold bitcoin. the gains can be reinvested

>People will not buy groceries or things they like because there's some % of deflation
Where's the scientific studies? I am waiting. This is the most retarded fucking idea ever. If anything it promotes wise financial management.

Absolutely correct,

Other cryptos can take it's place however.

when 95% of all money is in bitcoin there is no reason to hoard dumass

I use bitcoins to buy products online. I simply buy into Altcoin and sell for a few% thrn I take the money I made and buy a gift card.

Lol you can have Bitcoin. We anti establishment autists have moved to Monero. Just be careful that your next Bitcoin wasnt used on the spooky darknet. It may get banned by the crypto SJWs.

There's a way to make dollars deflationary, it's called a savings account.
Do people keep all their money in savings accounts because of this? Or do they buy the latest iPhone?

That is correct. What's your point though? I actually like the idea of a crypto "savings account" or "digital gold" that I can go in and out of with 1 click.

>Other cryptos can take it's place however.
but why would you buy other crypto's when you get more money from holding btc
the same argument still applies

personally I think it's a good thing since people will only spend when they really need/want to, and we will reduce our footprint on the earth

because it's a retarded idea. that should really be enough. think about it. it's just retarded.

You have $1000. Oh shit it's inflating gotta spend it
...except you can convert it instantly to $1000 of gold/bitcoin/stocks/real estate. Now it's deflationary. Oh shit never gonna spend it ever.
...except sell it for $1000 oh shiiit now I gotta spend it

Now assume you have gold/bitcoin. Won't work as currency. Let's sell our $1000 of gold again and get USD. Oh shit better spend it's inflating.

Now instead of selling $1000 just sell $4.99 worth to buy a burger
Instead of selling just buy the burger with $4.99 of bitcoin

Things are interchangeable. $1000 of bitcoin is identical to $1000 of USD, because at any point it can be converted to that.

That inflation is good is a lie fed to you by gubment so they can keep printing money. It's a hidden tax. That's literally the only reason inflation exists. As a tax.

>People spend USD because inflation causes USD to lose value over time
Simply false. People spend USD because they want burgers, lambos, whatever.

OP is retarded and fails to comprehend basic human psychology or basic economics. So if you had a shit ton of gold bars, you would live like a peasant and not spend it till you die? Retard.

Dude, seriously. I know SO many people that keep their value in cash in their bank account and don't even consider things like stock investments or bonds to allow their money to make more money.

95% of people on this planet don't even understand how inflation and deflation works. They have no idea that their bank interest earnings are being stripped away by inflation where their money is becoming less valuable every day.

People buy things because they want to. They certainly don't think as deeply into it as you claim.

btc will be the crypto equivalent of gold. While other coins more suited to fast transactions will be used day to day.

Because its way more convenient and you can buy it for fiat? Like, what?

Yes, god fucking forbid an economy where people actually save their money instead of spending it on useless, wasteful fucking shit, and, whats worse, actually investing in something that generates value with said savings.

Thank heavens we live in an inflationary economy where all of our money and value is pissed away on disposable products and niggerball and made up for with debt.

bitcoin wants to change exactly that because an inflationary currency benefit only the merchants and banks, we're forced to consume or else our money loses buying power

if our money was deflationary people would think twice before buying some fucking fidget spinner, or before leaving the lights on when you don't need them, or before throwing away something that you dont use anymore
basically a less consumerist society

nice quality jpg on that roastie whore

look up the friedman rule if you are somewhat interested in monetary policy (and have a basic understanding of the subject)

>At the time Friedman wrote, money paid no interest, and the optimal policy called for setting nominal interest rates on bonds equal to zero. To a first approximation, the nominal interest rate equals the real interest rate plus expected inflation. To set the nominal interest rate to zero, it follows that the inflation rate must equal minus the real interest rate. If the latter were around 2 to 3%, Friedman’s arguments suggest that the central bank should seek to deflate at a rate of 2 to 3%. This would involve reducing the nominal quantity of money, but this would fall at a slower rate than the price level, and the quantity of real balances would increase.

a deflationary currency is not necessarily a bad thing, it's just that the rate of deflation has to be around the same as the real interest rate (times -1 if you want to be precise).

right now obviously the increase in value of BTC is way too much for it to actually be a viable currency, but who knows what crypto will be like in 10 years and everything stabilizes somewhat.

people still need and want things even if their money is guaranteed to be more valuable next year. even scams and overinvestment/speculative bubbles existed in the 19th century when money was backed by deflationary fundamentals. People like to have a good time.

nobody with the incentive to blacklist your spendables has access to the resources for developing a system to trace transactions.

you 2 missed the point and are partially wrong. Even though this may be true for you, at a large scale it has consequences.

On a planetary scale there will be a percentage of people (it's debatable what that percentage might be) that will decide to hodl a large part of their money if they become aware of it's deflationary nature. This will fuck businesses and employment big time. Our current world is the way it is because everyone uses inflationary currencies. Hell, even a large number of businesses are built on the idea that "if I sit on this pile of cash it will just lose value in time, better invest it in something".

I bet that a large number of you fags wouldn't even be in crypto if fiat was deflationary.

My point is that you don't know what the fuck you're talking about and your fallacy is thinking that what applies to you applies to the whole world.

>So if you had a shit ton of gold bars, you would live like a peasant and not spend it till you die?

No, but you'd convert a part of it to live decently and hodl the rest.

Meanwhile if you'd be sitting on pile of deflationary cash you'd actually start thinking about doing something with it: start a business, buy some property, invest in crypto, whatever.

Careful desu. That's my waifu.

You'd sell your bitcoin for dollars or euros or whatever money your pajeet country uses. Because bitcoin is a luxury good and not a currency.

People have been using gold as a currency for a long time.

But beyond that, people will still spend it if they have to. Doesn't matter I could get two bottles of water per satoshi tomorrow if I need one today.

basically you swallowed the pill a measly few percent YOY of deflation was responsible for the great depression, (ironicly) avarice/gold conquests/colonization, homelessness, whatever, while a measly few percent of inflation cures all of that (hint: it doesn't)

the reason this succeeded is because that few percentage of inflation (the target is 2% for eurozone) while being an unnoticeable burden on the people, translates to a massive amount of profit for the government and the banks they work with. And in case you aren't aware, they make the rules.