So a 10% deflation rate not only wouldn't be a problem but would in fact be good for the economy: amazing.
I'm starting to get as tired of your "deflation is good" dogma as I am of the keynesian "printing during a crisis is the only solution" one.
Are you saying that goods getting more affordable/abundant at a rate of 10% per year is a bad thing?
You see, the only reason there can be a 1/5/10 % price deflation in an economy with a stable money supply (and that what bitcoin aims to provide) is because there are more goods chasing the same amount of money. How bad can that be?
And the only reason there are more goods is because people have found ways of producing them more efficiently, i.e. cheaper. Doesn't sound like a horror to me.
I get your point and I agree, but be careful, because some people can misunderstand your first sentence.
If prices drop because goods are more abundant (or their production becomes cheaper), better for society.
But a drop in prices is not necessarily good (just as a nominal increase in wages is not always good).
My extreme example of 10% deflation was directed for those who are saying that deflation is good from the financial perspective.
That kind of deflation rate is probably only possible due to credit contraction (destruction of the money created by banks) and with a monopoly on money.
Anyway, a deflation like that would have catastrophic effects for trade and investing. What upsets me is that some people deny this.
When the value of bitcoin becomes more stable than it is today, it won't have a deflation like that for two reasons:
1) Being free software, bitcoin will never have a monopoly on money.
2) Governments can't regulate fractional reserve effectively because people don't need banks to store bitcoins as much as they need them to store (and transact with) national currencies.
In summary, I'm not much concerned with bitcoin's future deflation, but that's far from saying that deflation is good.
