[IgorPartola]

Bitcoin is deflationary, isn’t it? How could it ever replace fiat if just by merely holding it you are guaranteed in the long run to increase value? You need mild inflation to get people to actually spend and not hoard. Bitcoin’s supply is fix so there is no point in ever spending it unless you want to cash out.

[trident5000]

Yeah because Ill never buy food and housing until I die because my currency is deflationary. That logic is so tired. Also the fact that you can convert US dollars to investments instantly instead of consuming basically extends the same situation, yet we still spend when we need to.

[Consultant32452]

If we imagine a deflationary currency encourages savings over consumerism... That doesn't sound so bad.

[IgorPartola]

From everything I’ve read, it tends to stagnate society. Why buy a car when you can just hold onto your money and tomorrow you can buy a house? Why buy a house when tomorrow you can buy a mansion. No value is produced because there is little incentive to invest into anything since just holding onto your money is a safe investment.

[throwaway829]

People buy things for the utility they provide. I could have not bought a PC 20+ years ago and waited for today’s PCs which 100x faster and cheaper but I wouldn’t of had a PC for 20+ years. Deflation in PC did not stop me from purchasing something I needed. Did society stagnate because PCs got cheaper?

[Consultant32452]

This is only a problem in a deflationary spiral, which is just as problematic as an inflationary spiral. Gold is deflationary and the industrial revolution was kicked off while most of the world was still on the gold standard.

[hoseja]

Sounds like what the people owning 95% of wealth are currently doing.

[xur17]

> Also the fact that you can convert US dollars to investments instantly instead of consuming basically extends the same situation, yet we still spend when we need to.

I've actually wondered about this -> why not use the SP500 as a form of currency? It seems like this would fit somewhere in between the US dollar and Bitcoin - store of value, increases in price over time (or at least historically does), pays dividends (so a productive asset). Downsides are no capped supply, and volatility (but so is Bitcoin).

[Consultant32452]

This would be a massive wealth transfer to the companies on SP500 because demand for the stocks would go up and those companies would basically get infinite zero interest loans by issuing more stock, which would inflate your currency.

[IgorPartola]

You see a lot of people buying groceries with BTC currently? What I see most people do is buy BTC and hold it, living off their regular paychecks, waiting for the BTC portfolio to hit some goal. They then trade it to the next investor who does the same. It’s not a currency so much as a store of value. It’s a stock, not money.

[trident5000]

Obviously thats going to be the case through rampant price discovery. Youre not saying anything original. Are you smarter than Visa and Mastercard and Paypal? Maybe they know something about future consumers that you dont.

[IgorPartola]

You clearly have some kind of chip on your shoulder either about me or about this subject. Acting like a snob won’t get you many conversation partners. Take care.

[trident5000]

I didnt think my response was very aggressive, at least it wasnt meant to be. Nevertheless you're free to do as you wish. Toodles