bitcoin will continue to deflate year after year. At least gold can be mined.
You know bitcoiners will still be mining for over 100 more years.
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.
Another lazy myth regurgitated. You were obviously an exam crammer, not a thinker.
People choose more over less. They will still invest in risk free bonds paying an interest rate because they will end up with more money. They will still invest in risky assets for the same reason if there were no deflation. More money.
You know bitcoiners will still be mining for over 100 more years.
Technically “mining” does not end because there will always need to be more blocks if there are new transactions. Minting new coins that get awarded to miners is what ends in a bit over 100 years. And then what happens? My point stands.
Another lazy myth regurgitated. You were obviously an exam crammer, not a thinker.
It’s fact. You can’t even refute it besides desperate name calling and just stating the opposite. 😂 Sorry that reality isn’t fun for you.
When your system entirely hinges on people not considering risk… 🤣 denying that risk is a factor in risk-reward calculus because “PeOpLe WaNt MoRe” is totally convincing, big winner of an argument. They want more, and they can get more… by doing absolutely nothing… so that’s exactly what they’ll do to get the more they want. They could get more by robbing a bank or selling their kidney!!! Oh wait, that’s right, risk… 🤦
I’m not calling you names. I’m saying you have demonstrated no ability to think independently. I don’t think you are a LLM but likely you are copy pasting from one.
You can’t even refute it
I did. You seem unable to process the responses I write or even the links you post.
When your system entirely hinges on people not considering risk.
I wrote the opposite. That under deflation people will still make risky investments because it will make them money. Yet again you demonstrate an inability to comprehend.
They want more, and they can get more… by doing absolutely nothing…
Ah yes, accusing one of using an LLM, a sure sign of winning the argument 🤣
Money invested earns deflation + interest.
That’s incorrect, money LOANED earns deflation + interest, not money invested. Money invested loses out on the deflation.
You have 1BTC. You exchange the 1BTC for 1 unit of an investment. As BTC deflates, it’s buying power increases. When you go to sell your investment, you find that 1BTC still buys 1 unit of the investment, even though your investment grew in value during the same period of time. You could have done nothing to get the same result, without risking the volatile investment losing value instead of gaining. The higher the return needed to outpace deflation, the riskier the investment needs to be. Deflation worked against the investment, not with it.
Inflationary currency motivates investment and consumption. When your money is going to lose some value anyway, you might as well take a risk and invest it for a potential reward. You might as well make that large purchase today, because your money will buy a little less tomorrow. This is healthy for the economy.
You are correct that deflation adds on top of interest, which makes loans more expensive. This stifles an economy by decreasing demand/consumption and the flow of money through the economy. When loans are more expensive to pay back, people are discouraged from taking a business loan and starting a new business or taking out a loan and investing it or using it to make a large purchase.
I think we’ve reached your limits in this topic.
Lol I’m literally giving you a free education. You should be paying me for this. It’s something that you’re still responding after your argument has been torn to shreds with my every reply, without fail. The name calling and LLM accusations creep in as you start to realize you’re wrong and desperately cling to denial. The cracks are already showing lol. Getting tired of trying to spin inconsistencies? Like I said, it’s effortless to just be correct.
In order to loan out money and charge interest, someone needs to agree to the terms on the other side of the exchange.
Agreed.
When there is inflation a higher amount of interest is accepted by the lender to compensate this loss.
When there is deflation a lower amount of interest is accepted by the lender.
The economy doesn’t grind to a halt. People don’t horde cash. Consumption still occurs. Services are still performed.
Even if deflation means the value of money increases every year, people will still lend out their money because they would like to have more than money than if they did nothing.
find that 1BTC still buys 1 unit of the investment instrument, even though your investment grew in value during the same period of time.
So you made a bad investment in something that wasn’t needed. Invest more wisely. This is basic economics.
It’s impressive that you’re still responding after your argument has been torn to shreds
It’s good practice and helps hone my ideas.
Deflation is the answer to the infinite growth required by capitalism. It should be embraced, not avoided.
The economy doesn’t grind to a halt. People don’t horde cash. Consumption still occurs. Services are still performed.
Again, facts and history disagree with you. See the great depression and other economic downturns.
people will still lend out their money because they would like to have more than money than if they did nothing
Again, risk exists and is half of the risk-reward calculation. When your system entirely hinges on risk not existing… big sign that you’re wrong lol.
So you made a bad investment in something that wasn’t needed. Invest more wisely. This is basic economics.
It’s a demonstration of the relationship between deflation and investment. And yes, it is basic economics. 😂
Invest more wisely
Invest with less risk? More risk? Or you’re saying “just predict the future correctly” 🤔 I wonder if you’d learn something about this in an econ 101 class.
Deflation is the answer to the infinite growth required by capitalism. It should be embraced, not avoided.
Gee, you’re literally dead wrong, and the experts agree with me. It’s inflation, not deflation, that is required for growth. There’s a reason the government targets a rate of 2% inflation per year.
Inflationary currency motivates investment and consumption. When your money is going to lose some value anyway, you might as well take a risk and invest it for a potential reward. You might as well make that large purchase today, because your money will buy a little less tomorrow. This is healthy for the economy.
You are correct that deflation adds on top of interest, which makes loans more expensive. This stifles an economy by decreasing demand/consumption and the flow of money through the economy. When loans are more expensive to pay back, people are discouraged from taking a business loan and starting a new business or taking out a loan and investing it or using it to make a large purchase. This is bad for the economy.
I have no idea why you claim my “system” has nothing risk. Reread this thread to correct your misunderstanding.
You need a higher return on investment in order to outpace deflation and make investing worth your while. Do assets with a higher potential return have more risk or do they have less risk?
Also I’m just going to keep posting these 2 paragraphs every comment until you actually address them lol:
Inflationary currency motivates investment and consumption. When your money is going to lose some value anyway, you might as well take a risk and invest it for a potential reward. You might as well make that large purchase today, because your money will buy a little less tomorrow. This is healthy for the economy.
You are correct that deflation adds on top of interest, which makes loans more expensive. This stifles an economy by decreasing demand/consumption and the flow of money through the economy. When loans are more expensive to pay back, people are discouraged from taking a business loan and starting a new business or taking out a loan and investing it or using it to make a large purchase. This is bad for the economy.
You know bitcoiners will still be mining for over 100 more years.
Another lazy myth regurgitated. You were obviously an exam crammer, not a thinker.
People choose more over less. They will still invest in risk free bonds paying an interest rate because they will end up with more money. They will still invest in risky assets for the same reason if there were no deflation. More money.
Technically “mining” does not end because there will always need to be more blocks if there are new transactions. Minting new coins that get awarded to miners is what ends in a bit over 100 years. And then what happens? My point stands.
It’s fact. You can’t even refute it besides desperate name calling and just stating the opposite. 😂 Sorry that reality isn’t fun for you.
When your system entirely hinges on people not considering risk… 🤣 denying that risk is a factor in risk-reward calculus because “PeOpLe WaNt MoRe” is totally convincing, big winner of an argument. They want more, and they can get more… by doing absolutely nothing… so that’s exactly what they’ll do to get the more they want. They could get more by robbing a bank or selling their kidney!!! Oh wait, that’s right, risk… 🤦
I’m not calling you names. I’m saying you have demonstrated no ability to think independently. I don’t think you are a LLM but likely you are copy pasting from one.
I did. You seem unable to process the responses I write or even the links you post.
I wrote the opposite. That under deflation people will still make risky investments because it will make them money. Yet again you demonstrate an inability to comprehend.
Money under the mattress earns deflation
Money invested earns deflation + interest.
The second is more than the first.
I think we’ve reached your limits in this topic.
Ah yes, accusing one of using an LLM, a sure sign of winning the argument 🤣
That’s incorrect, money LOANED earns deflation + interest, not money invested. Money invested loses out on the deflation.
You have 1BTC. You exchange the 1BTC for 1 unit of an investment. As BTC deflates, it’s buying power increases. When you go to sell your investment, you find that 1BTC still buys 1 unit of the investment, even though your investment grew in value during the same period of time. You could have done nothing to get the same result, without risking the volatile investment losing value instead of gaining. The higher the return needed to outpace deflation, the riskier the investment needs to be. Deflation worked against the investment, not with it.
Inflationary currency motivates investment and consumption. When your money is going to lose some value anyway, you might as well take a risk and invest it for a potential reward. You might as well make that large purchase today, because your money will buy a little less tomorrow. This is healthy for the economy.
You are correct that deflation adds on top of interest, which makes loans more expensive. This stifles an economy by decreasing demand/consumption and the flow of money through the economy. When loans are more expensive to pay back, people are discouraged from taking a business loan and starting a new business or taking out a loan and investing it or using it to make a large purchase.
Lol I’m literally giving you a free education. You should be paying me for this. It’s something that you’re still responding after your argument has been torn to shreds with my every reply, without fail. The name calling and LLM accusations creep in as you start to realize you’re wrong and desperately cling to denial. The cracks are already showing lol. Getting tired of trying to spin inconsistencies? Like I said, it’s effortless to just be correct.
Agreed.
When there is inflation a higher amount of interest is accepted by the lender to compensate this loss.
When there is deflation a lower amount of interest is accepted by the lender.
The economy doesn’t grind to a halt. People don’t horde cash. Consumption still occurs. Services are still performed.
Even if deflation means the value of money increases every year, people will still lend out their money because they would like to have more than money than if they did nothing.
So you made a bad investment in something that wasn’t needed. Invest more wisely. This is basic economics.
It’s good practice and helps hone my ideas.
Deflation is the answer to the infinite growth required by capitalism. It should be embraced, not avoided.
Again, facts and history disagree with you. See the great depression and other economic downturns.
Again, risk exists and is half of the risk-reward calculation. When your system entirely hinges on risk not existing… big sign that you’re wrong lol.
It’s a demonstration of the relationship between deflation and investment. And yes, it is basic economics. 😂
Invest with less risk? More risk? Or you’re saying “just predict the future correctly” 🤔 I wonder if you’d learn something about this in an econ 101 class.
Gee, you’re literally dead wrong, and the experts agree with me. It’s inflation, not deflation, that is required for growth. There’s a reason the government targets a rate of 2% inflation per year.
Inflationary currency motivates investment and consumption. When your money is going to lose some value anyway, you might as well take a risk and invest it for a potential reward. You might as well make that large purchase today, because your money will buy a little less tomorrow. This is healthy for the economy.
You are correct that deflation adds on top of interest, which makes loans more expensive. This stifles an economy by decreasing demand/consumption and the flow of money through the economy. When loans are more expensive to pay back, people are discouraged from taking a business loan and starting a new business or taking out a loan and investing it or using it to make a large purchase. This is bad for the economy.
Read the links you posted. Debt default was the crisis. Deflation was a symptom.
I have no idea why you claim my “system” has nothing risk. Reread this thread to correct your misunderstanding.
You need a higher return on investment in order to outpace deflation and make investing worth your while. Do assets with a higher potential return have more risk or do they have less risk?
Also I’m just going to keep posting these 2 paragraphs every comment until you actually address them lol:
Inflationary currency motivates investment and consumption. When your money is going to lose some value anyway, you might as well take a risk and invest it for a potential reward. You might as well make that large purchase today, because your money will buy a little less tomorrow. This is healthy for the economy.
You are correct that deflation adds on top of interest, which makes loans more expensive. This stifles an economy by decreasing demand/consumption and the flow of money through the economy. When loans are more expensive to pay back, people are discouraged from taking a business loan and starting a new business or taking out a loan and investing it or using it to make a large purchase. This is bad for the economy.
No, in an inflationary environment you demand a higher return on investment in order to outpace inflation. Look at Argentina if you are confused.
Deflation is the opposite of inflation. Keep up.