If I gave you a dollar and promissed you I would double what you had left of it each day, would you not be hesistant spend money? Skip eating to have 2$ skip eating another day to have $4. Isnt this the end game of a currency exponentially increasing in value? Doesnt this defeat the purpose of currency? Ive seen a lot of arging back and forth with the same points. But using my simple example can one explain how a world would operate with deflation? Doesnt inflation act as an incetive to spend? Would the market need to make products and services less expensive everyday to create ncentive to spend? Thanks in advance. Lots of smart Anons hopefully the shills on both ends dont slide the conversation. No one really knows whats going to happen so lets stop pretending.
Will crypto enslave the world?
cryptocurrencies are at an early stage, one day, if it gets adopted as normal currency, it will reach a plateau and move sideways, not anymore increasing in value
That's just bitcoin though no? So bitcoin acts fine as a store of wealth, but not great as a day to day spending currency.
Emerging consensus is that Bitcoin is an asset
It sounds kinda strange but not everyone actually gives a shit about having more money.
They'd rather be in debt and borrow from tomorrow. Also you have to eat, pay rent, utilities, transportation, and most people want to keep up the image of a certain life style.
I hope you aren't expecting that the world is suddenly going into neet mode where everyone eats pasta everyday and pisses in bottles.
Eventually your needs force you to spend, also, if a significant portion of the population is spending money on speculation, those actually investing in goods/services profit a bunch, attracting more money that would otherwise go to crypto.
Also, your example is also bad, a simple month of fasting would yield more than one trillion dollars, and that is more than you can spend on a lifetime.
If you want to educate yourself, see what happened in Spain/Portugal when they started leeching massive amounts of gold from the Americas without increasing production.
As the other guy said, at max adoption it would become a currency largely stagnant in value. That's the end goal of any cryptocurrency
In a deflactionary world you would live frugally and spend only what you absolutelly need to. Fuck your consummerism and your huge marketing departments full of retards. Old people would get comfy retirement out of their own money instead of raping the shit out of the future generations. Just because it's not good for parasitic banks and politicians it doesn't mean there isn't a viable deflactionary model.
There's a huge difference here. People aren't going to spend what they normally would because hanging on to fiat means you are losing money.
Investors would never invest in anything, what is going to give you a return greater than bitcoin? A factor of 10 every year?
>there isn't a viable deflactionary model
>deflationary model
>no investments by anyone into anything
>no startups
>no pharmaceuticals
>no r&d
Technological progress would grind to a halt.
guesswork
Nah if anything resources would simply get allocated to the most important (read: profitable) opportunities.
Cryptos are a surging asset which are on their way to get their fair share from the worldwide wealth. So it's only logical that they rise strongly right now. Just wait some years and cryptos will lose most of their volatility and act just like fiat currencies.
>Veeky Forums - Business & Finance
>live frugally and spend only what you absolutelly need to
Unfortunately this is, generally speaking, bad for the economy. Economic growth comes from high market liquidity, basically everyone spending and earning lots of money. This isn't to say deflationary currency can't ever work, but it is inherently at a disadvantage already because it encourages itself to be hoarded instead of spent. I think it's called Graham's law- bad money pushes out the good, because "good" money will be hoarded instead of spent. We want a currency that people don't want to just sit on huge stacks of, and we've accomplished that with USD-- rich people view static cash stacks as rotting, deprecating wastes and invest that money in markets, helping the economy grow
>most important (read: profitable) opportunities
Yes and the most profitable thing would be to hodl.
>saving money is bad for the economy
Oh, boi...
Good goy.
>sorry kids, no Christmas presents this year even though our net worth doubled since last year
>no food either, gotta hold our money so we can double our net worth next year
Why do people believe the retarded "deflation is bad, no one would spend" meme?
People spend money they don't have now and go into debt to spend. Why the fuck would they spend less if they had more purchasing power?
You're a brainlet
There would be a middle ground you retard. You make 50k, you save 15k or whatever for the future and watch it appreciate. The rest is spent on the essentials and also some luxuries if you desire them. Then in a few years all your saved money is worth more and you can live a comfier life with the same level of income.
People wouldn't suddenly stop going to concerts, sporting events, and restaurants because they lose the opportunity cost in five years if they eat spam instead of a steak today. People like spending. In a deflationary environment, they could spend some now, and also their savings would allow it to make more sense than going into debt. It's not an either/or. You're not spending 100% or saving 100% of your income. Unfortunately these days spending more than you make is the norm, due to inflation.
>Why the fuck would they spend less if they had more purchasing power?
This isn't about groceries and rent you mong, its about higher tiers of investment, like investing in the stock market or starting a business.
Why the fuck would anyone start a business and work hard when you would make more working a menial job, living relatively frugally and hodling?
Craig Wright said exponential and logistic growth look the same in the early stages.
Bitcoin will eventually reach a finite value after its use base stops growing immensely.
It will increase at a value relative to the costs of services and goods.
yea but at a yearly 1-3% not 3000%
You must be an actual retard
>working a regular job you make 50k and your purchasing power increases by maybe 5%/year
>start a business and if takes off you make 500k+/yr
Durrr why would anyone start a business?