Topic: Why such agreement that Deflationary currency is a bad thing - page 7. (Read 4415 times)

Basic mathematics can't be wrong, ignoring it is how our economies got so bad in the first place.

Current Bitcoin yearly inflation is approximately
144*25*365/11000000 = 12%
Current fiat yearly inflation is approximately 5%

Of course we mine the Bitcoins out of thin air, today mined Bitcoins were not in supply yesterday. Also by your flawed logic if we limit supply of fiat to 10^30 times current fiat amount wich could goverments sign because it will never go to this scale then mysteriously fiat is no longer inflationary currency because no more than 10^30 times current fiat amount can be created

That's the amount of Bitcoins being mined, you can only mine a certain amount, the overall money supply is actually limited to 21 million, do your research, eventually miners will run out of coins to create.

ehm, 144*25 BTCs are created daily, thats why inflation

How can it be inflated when the supply of Bitcoins cannot be changed? People like you need to look up the dictionary definition of inflation, this is to do with money supply, not speculation, which are both entirely different things.

Bitcoin is not Deflationary currency. Current yearly inflation of Bitcoin is higher than fiat. In your whole life Bitcoin will be inflation currency, though the inflation rate decreases every year.

Its because some people want you to work for them to the end of your life. And its good for them. Not for us.

The whole point of deflation is that it's causing the price of everything to fall that can have a price tag attached to it, things will still be more expensive but you won't have to work as long in your life because you require less deflationary currency in order to buy something. A perfect example is houses, we all know how expensive they can be, they're pretty big purchases, if I for instance wanted to get a nice big house it would cost me easily £100,000 - £200,000 that's a hell of a lot, in fact, chances are if you know anything about mortgages you're average person is going to have to work their whole lives just to pay it off. However if you look at a deflationary currency it's currently only 2000 Bitcoins, that's it, in fact, the value of Bitcoins is rising so much now I'll probably be able to afford a house at 1000 Bitcoins if I look around on the market enough because that's going for £80,000 - £90,000 now. What this means as well if you're a for instance selling goods to people for a living you need less sales in order to hit the price tag that you're aiming for and of course as an employee you need to work less hours because of that too.

It's not just the large purchases either that's effected by this of course, all the cheaper items will be even cheaper, things will still technically be valued the same as before, but it just means you don't have to work your whole life to pay any of it off like an inflationary currency. I really can't understand why people support these kind of systems because by all accounts deflationary is just far better and the more I see people screaming about it being a bad thing I can only think it must be a good thing people like that are getting so pissed off.

Disinflation has been covered to some extent. What would an economy look like if the only currency was one with built in deflation.

Would people live in smaller homes since their currency would generally appreciate relative to their home? Would companies need to outperform the general level of productivity increases and population growth in order to get their first dollar of investment capital? I believe that if the entire word used only a deflationary currency then deflation would be a function of productivity increases, population increases and the shrinking of the supply of currency (e.g. lost passwords); is this a correct view?

What other implications/problems or benefits are there with a potential worldwide adoption of Bitcoins and a ubiquitous rejection of fiat currency?