Wrong, good try though. Yes, you owe $100, but each dollar is worth more, meaning you owe a greater “real value” (that’s an econ 101 term you should look up), or in otherwords, the debt increased.
A little bit of deflation is a product of, and good for, economic growth. But, in the case of an economy-wide, central bank-fueled debt bubble followed by debt deflation when the bubble bursts, rapidly falling prices can go hand-in-hand with a financial crisis and recession.
Deflation isn’t bad. It is a symptom that occurs after an economy-wide, central bank-fueled debt bubble. That’s the bad part. The debt that’s not being repaid.
This takes us right back to the start of the discussion. In a crypto economy a central bank doesn’t even exist, so crypto deflation is never bad.
If you are expecting $100 and are only going to get back $50, are you happy that your purchasing power has increased and you are really getting $51 back, or are you angry that you’ve actually lost $49.
Also LOL at the change in value being $1. Bitcoin is finite, permanently, forever. 100 years from now, 1000 years from now, bitcoin will continue to deflate year after year. At least gold can be mined, although at some point we will have extracted it all. The 2% deflation in your example is an absurd underestimation. Percentages in the hundreds to thousands is more realistic.
Deflationary currency is a great way to kill an economy, there’s no motivation to invest and accept any risk when all you have to do to increase your wealth dramatically is wait, risk free. Economic activity comes to a grinding halt.
Wrong, good try though. Yes, you owe $100, but each dollar is worth more, meaning you owe a greater “real value” (that’s an econ 101 term you should look up), or in otherwords, the debt increased.
😂
Nope. The debt is still $100. There is no increase.
Being slightly harder to pay back is irrelevant if there are now only $50 of assets in the economy.
The inability to repay debt caused the great depression, not deflation.
Nope nope! You’re just denying deflation exists, now?? 😂 That’ll work. This is where mental gymnastics gets you. Sad!
Well, looks like I’ve won.
Why is deflation bad?
https://www.investopedia.com/articles/personal-finance/030915/why-deflation-bad-economy.asp
https://en.m.wikipedia.org/wiki/Debt_deflation
Dude. Read what you post.
Deflation isn’t bad. It is a symptom that occurs after an economy-wide, central bank-fueled debt bubble. That’s the bad part. The debt that’s not being repaid.
This takes us right back to the start of the discussion. In a crypto economy a central bank doesn’t even exist, so crypto deflation is never bad.
Does deflation make debt easier or harder to repay? 🤔🤔🤔🤔
😂😂😂😂
If you are expecting $100 and are only going to get back $50, are you happy that your purchasing power has increased and you are really getting $51 back, or are you angry that you’ve actually lost $49.
The crisis is the default, not the deflation.
That’s not an economy.
Also LOL at the change in value being $1. Bitcoin is finite, permanently, forever. 100 years from now, 1000 years from now, bitcoin will continue to deflate year after year. At least gold can be mined, although at some point we will have extracted it all. The 2% deflation in your example is an absurd underestimation. Percentages in the hundreds to thousands is more realistic.
Deflationary currency is a great way to kill an economy, there’s no motivation to invest and accept any risk when all you have to do to increase your wealth dramatically is wait, risk free. Economic activity comes to a grinding halt.