Veeky Forumstards,
Explain to me how a currency works economically when it's deflationary in nature. What incentive do I have to spend on consumer products when my purchase power goes up the longer I hold?
Wouldn't a lack of consumer stimulus grind an economy to a halt?
>I do not know how capitalism works
>i'm too stupid to answer the question
>What incentive do I have
Idk guess you have none. After all people's wants are grounded only in the value of their money, not in the fact thay they need to eat, drink and have a roof over their head, their car needs gas and maintenance, their time is finite and they want to go places and do things etc.
Inflation is only good if you want your populace to not be able to accumulate wealth. This has been necessary as no one won ww2 and the economies have been competing.
infinite currencies is actually a really really bad thing but I can't tell you why
one currency is a monopoly and way worse than infinite
the world needs two, period: one inflationary and another deflationary
the next step in human evolution are these machines:
>youtube.com
screencap this
>Two currencies
Partial barter, stupid and inefficient. People use the most widely accepted medium as currency. One of the two will be more widely used, and therefore the other one will not be used and lose value.
>What incentive do I have to spend on consumer products when my purchase power goes up the longer I hold?
Step into the real world for a second. If gold magically became the only currency we use would you be making this arguement?
the inflationary one is your 'spending money'
the deflationary one is your 'savings account'
god you're dumb
>What incentive
scarcity
Will you give up eating today because the foods cheaper tomorrow?
Will you skip going to work today because fuel will be cheaper tomorrow?
Will you replace your broken phone next month instead of today?
Sweet sweet irony
Generally this is a very complex question. You would still buy appreciating assess such as a house on the basis that it both improves your standard of living and is deflationary, however you are more likely to live much more frugally when it comes to perishable or inflationary assets. If you're already frugal and live within your means then this should simply benefit you, however whether this would improve macro economic health is largely unknown. Basically it boils down to your personal economic thoughts about debt, on both a personal and global level.
brainlets
wtf are you on, if you want growth you gotta have an inflationary currency. What you are talking about ia irrelevant and gibberish.
Why would companies invest if the global currency is deflationary? What are their incentive? With deflationary currency there is no incentive to invest, leading in the long run to lower standard of living and a decaying society. Whether you think that's good or bad is up to you.
why should you have an incentive to mindlessly spend on countless consumer products? why do you believe it's normal and healthy to have a society entirely comprised of people whose sole purpose is to earn money so they can spend it immediately on new things?
economically or politically you are not even close to what is essential
I don't see the validity in this argument.
If this were the case; why don't people just convert all inflationary currency into something deflationary immediately to not miss out on gains and then never spend it.
Why doesn't everyone just direct deposit their paychecks into the bond market
it means you shouldve bought BTC 6 years ago and sold 2 months ago
you would still invest a deflationary currency if you can get better gains elsewhere.
Just because something is intrinsically deflationary does not mean it is always going up in value btw.
Some cryptos also have a small built inflation.
Bitcoin doesn't but if you haven't got this by now, Bitcoin does not derive its value from its function as a currency. Despite whatever Satoshi may have envisioned, Bitcoin is a secure, fungible, immutable, readily transact-able store of value. Not necessarily a currency, and it is thriving as such.
They shouldn't even bother trying to implement Lightning. Leave a good thing alone.
Why the hell would you want an artificial incentive to consume more?
he's a brainwashed rat racer
OP just search austrian school of economics and then keynesian school of economics
basicaly the austrian thought was that a deflationary currency was the best option, too bad they got BTFO by deflation during the "great deflation" in the late 1800. keynesian theories saved US ass during the great depression and basically whoever still thinks a deflationary currency can work is retard
>i cant spend my money unless they lose value over time
>Got BTFO by the great deflation
They got BTFO by a long period of real wage and economic growth? Cool.