[grinnbearit]

A venture with a 75% chance of providing 5000 utils of value is not the same as a 100% chance of producing 3750 utils.

Put another way, inflation motivates gambling and deflation motivates saving - it points out a serious consequence of forced spending, namely a flight to other, less abstract stores of value.

I would like your views on what deflation represents in an economy, I understand people are saving/hoarding money but by never spending it don't they remove themselves from the system? On the other hand, wouldn't an increase in productivity lead to the same amount of money buying better/more goods?

Using a stupidly simple model, if the total productivity of a society using Bitcoin remained constant would there be any deflation? What if the total productivity fell?

We should discuss the implications of mining in another post :)