Does the deflationary nature of BTC "encourage hoarding and delay spending"? - page 2.

odolvlobo

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Quote from: frenulum on August 28, 2015, 06:46:20 PM

Wondering peoples opinions on this.. Does the deflationary nature of BTC "encourage hoarding and delay spending"?

Deflation encourages hoarding and delays spending no more than inflation encourages wasteful spending.

However, it must be noted that hyperinflation seems to be a regular occurrence, whereas the dreaded deflationary spiral has never happened, even when countries were on a gold standard (which is also similarly deflationary). So, it seems to me that inflation should be feared much more than deflation.

jonald_fyookball

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Core dev leaves me neg feedback #abuse #political

hoarding ? or prudent saving?

spending? or wasteful splurging?

Right now people who save are either punished by inflation or
have to accept risk of investments. A deflationary currency
will reward savers.

galbros

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Quote from: RocketSingh on August 28, 2015, 07:05:24 PM

Deflationary nature ? Ask those who bought @ 1000 Wink

In theory, yes, this is a problem. In modern macroeconomics deflation is a bad thing because consumers defer consumption since prices will be lower tomorrow.

However, as RS pointed out, this really hasn't been much of a practical problem with bitcoin.

In addition, this problem is in the future because a large number of bitcoins are still being created, so still some inflationary pressure.

Good Luck!

hodedowe

sr. member

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It's too inconvenient for everyday retail use right now. Who wants to pull out a laptop at the checkout counter? Online or delivery only for me. So yes, I'm hodling as the kids say. Cheesy

seedtrue

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I am guilty of hoarding my BTC, and I rarely spend Bitcoin. But this is not because of the deflationary nature of Bitcoin. I hoard gold, silver, old coins, and good scotch. I hoard cash to, but in a different way and for different reasons. I guess I am just a financial hoarder by nature if such a thing exists.

RocketSingh

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Deflationary nature ? Ask those who bought @ 1000 Wink

meono

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Quote from: frenulum on August 28, 2015, 06:46:20 PM

Most recent entry to "Bitcoin Obituaries" got me thinking..

Quote

We have yet to see any meaningful adoption in the retail world and the institutional world seems quite lukewarm. . . . The deflationary quality of Bitcoin - by design and not by accident - is a major drawback. Deflation naturally encourages hoarding and delays spending, which is the behavior we are witnessing with BTC holders.

Original article here:
https://www.linkedin.com/pulse/distributed-ledgers-part-i-bitcoin-dead-pascal-bouvier-cfa

Wondering peoples opinions on this.. Does the deflationary nature of BTC "encourage hoarding and delay spending"?
If so, is that a huge problem? .. and can it be addressed?

I do get the impression with Bitcoin that there are more speculators (on this forum at least) than people who really want to use the technology in their every day lives.

terrible article. This has been discussed multiple time. The idea that deflationary cause hoarding is very shortsighted.

We're so used to the deficit spending to a point that "saving" become hoarding. In the fiat world, your "saving" account cant even beat the inflation, thus ppl must looking into various " investment" just to keep their "wealth".

frenulum

full member

Activity: 146

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Most recent entry to "Bitcoin Obituaries" got me thinking..

Quote

We have yet to see any meaningful adoption in the retail world and the institutional world seems quite lukewarm. . . . The deflationary quality of Bitcoin - by design and not by accident - is a major drawback. Deflation naturally encourages hoarding and delays spending, which is the behavior we are witnessing with BTC holders.

Original article here:
https://www.linkedin.com/pulse/distributed-ledgers-part-i-bitcoin-dead-pascal-bouvier-cfa

Wondering peoples opinions on this.. Does the deflationary nature of BTC "encourage hoarding and delay spending"?
If so, is that a huge problem? .. and can it be addressed?

I do get the impression with Bitcoin that there are more speculators (on this forum at least) than people who really want to use the technology in their every day lives.

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