Bitcoin is extremely deflationary. Imagine (or read a history book) a society in which almost all wealth/income is derived from land (a "deflationary" asset the value of which only increases as population grows and 95%+ of it is inherited).
Bitcoin is that just much worse because unlike in the case of land you don't need labor and significant capital investment to make any money from it you can just hoard it get richer without doing anything, which means:
- no economic growth (why invest in anything economically productive but risky when you can just get richer by doing nothing)
- eventually 90%+ of all wealth will become inherited and people who were born poor/disadvantage will remember these times as a lost utopia.
> It’s a pretty bad deal for most people.
Yes and even if bitcoin is a "better deal" for you it will be a significantly worse deal long term for the people who follow you..
Only if you have a static or economic in permanent recession then yes.
If you have a growing economy (of course not a concern it bitcoin would replace Fiat currencies) it's extremely deflationary. The supply of money has to grow at least at the same pace as the demand for it, otherwise bad things happen...
Bitcoin is extremely deflationary. Imagine (or read a history book) a society in which almost all wealth/income is derived from land (a "deflationary" asset the value of which only increases as population grows and 95%+ of it is inherited).
Bitcoin is that just much worse because unlike in the case of land you don't need labor and significant capital investment to make any money from it you can just hoard it get richer without doing anything, which means:
- no economic growth (why invest in anything economically productive but risky when you can just get richer by doing nothing)
- eventually 90%+ of all wealth will become inherited and people who were born poor/disadvantage will remember these times as a lost utopia.
> It’s a pretty bad deal for most people.
Yes and even if bitcoin is a "better deal" for you it will be a significantly worse deal long term for the people who follow you..