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by ogogmad 2012 days ago
Except processing power is not a currency, so it's the opposite way round...
1 comments

If you're looking at USD as the base asset, computers are undergoing inflation, not deflation. Both USD and computers are inflating in supply, but computers are inflating faster (in terms of processing power at least)- hence the continuous drop in price. You could argue USD is deflating in comparison to computers, but computers are not deflating in comparison to USD.

Edit for a bit more clarity: Inflation / Deflation is relative to a "base asset" which is considered unchanged in value. For USD this is normally a standard basket of assets (foreign currencies or a "market basket").