/biz/ - Business & Finance

I think that prices fall, but then the value of the currency goes up so it's a virtuous cycle

>>4742724
A little bit 2-3% inflation is good for an economy because it means money moves around which stimulates economic growth. Deflation is good for an asset which investors want to hold because less supply with increased demand = higher value

They're not wrong that in the case of BTC right now it causes people to hoard their wealth instead of spend it and stimulate the economy, but that's only until it (or BTC's successor) reaches maximum adoption and becomes a universally accepted world currency. At that point price would largely stagnate and people would begin using it as a currency

so economists now think zimbabwe is a paradise?

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keep spending your money goyim, that new iphone14 is worth your 2 months salary, trust me.

I think there was no deflatory economy in a very long period of time. Or maybe never, because old currency had value on its own (golden coins) and was deteriorating over time.
I personally think that deflation or inflation should not exist. Inflation opens up many defensive mechanisms for solving economic problems, but that's not why most states use it. They are greedy jewish fucks that only print money for their own leisure. And end up like Zimbabwe.
BTC price is rising because of speculation, but also because of wealth transfer. Nobody in the right mind wants to preserve their holdings in fiat, especially if it's not USD or EUR.

deflation = compound interest = savings account

that used to be a good thing

nowadays, it's more hipster to get a loan

gov prints money and everyone else's money is worth less

it seems like a good idea to print more to force the rich to get rid of their money

so they do - wealthy people buy mansions and art (non-depreciating assets), which is the same as holding btc

poor people get into massive debt, but that's ok coz the gov is printing money

sure, spending increases, but at the end of the day, people work harder to buy the same stuff

the only reason people use money is because they're not allowed to earn and pay taxes in anything else

the rich aren't dumb - they aren't using cash at all. (assets/investments/portfolio/gold/silver/real estate/businesses)

in theory bitcoin lets you own a tiny piece of the Mona Lisa, while someone who is rich can own the whole thing

result: the rich get richer even faster as the poor get poorer (because inflation is already priced into interest on debt)

>>4742724
If you have a coin that is worth more tomorrow than today, woudl you want to spend it?

>>4743308
If I needed to. Deflation makes sure resources are allocated in the most efficient mannor. I.e People aren't overspending like they are now. You can compare this to technology.

Why do people buy the iphone x when they could buy an iphone 11 if they wait a year? The answer is they would wait indefinitely, and they want an iphone x.

Same thing applies to every other good in the economy. If goods are inelastic, you're going to buy them no matter the price. And if they're elastic you'll only buy them if you want them.

Resources are more efficiently allocated in deflationary economies because people won't have the incentive to frivolously spend. This is a good thing if you want a smaller wealth inequality gap.

>>4743692
this. If I have to cash out and buy something I will, but my plan is hold

>>4743757
my point exactly. What happens if everyone holds on to their values and no exchanges are made?

>>4743692
>Resources are more efficiently allocated in deflationary economies because people won't have the incentive to frivolously spend.
>This is a good thing if you want a smaller wealth inequality gap.
I can't into economics - the post
kys communist

>>4743805
The whole idea of an economy that depends on unnecessary spending is idiotic anyway.

>>4743805
People gotta eat, anon. People want stuff, not money.
We had deflationary currency all through the industrial era (1865-1900) and that had the most economic growth of any period in history

>>4743839
>t. Keynesian Jew
Literraly the opposite of communism. Free market is the most efficient way to allocate goods. Government inflation of currency is communism.

>>4742724
Economists said that the fax machine would be more important than the Internet.

fuck economists.

>>4743805
LoL you still have to pay your bills you know. It's not like ppl are giving you shit for free

>>4743164
This.

((economists)) poo on deflationary currency because it means that 90% of worthless spending would cease and consumerism would become more conservative.

A deflationary economy would not be destructive to necessary goods and services but it would hurt the worthless bubble nich markets like Becky's favorite shoe store or Tom's favorite sports memorabilia.

Right now, inflation is out of control, our dollar is absolutely fucking worthless. And it's propping up a bunch of bullshit markets that would otherwise never exist.

If a deflationary currency takes the lead, it would be a good thing. It would weed out and destroy these useless trinket markets that are largely propped up by female spending. Our economy is a bubble of useless goods and services and some deflation would help pop that bubble.

World economy worked perfectly fine before the fed was created. All the "inflation is good goy" apologists are kike shills.

>>4743854

>only food and rent is necessary spending
>all other spending is superfluous.
>We can just exchange services mandated by the gubberment
Yeah go live in Cuba, your ideal communshit paradise.

>>4743886
You know what else was happening in the industrial era? Lots and lots of venture and spending, kys brainlet
>>4743918
>all inflation = ZIMBABWE
kys brainlet nignog

Jews like inflation because they are lending the money into existence

The people who save the most tell others not to

>>4744164
Just shut up retard, nobody is buying your crap.

>>4742769
It's awful for the economy

The inflation isn't the result of demand increase, its becuase banks are literally lending money into existence

Grow up

>>4744192
>>4744180

>>4744148
This

How many of the Bitcoin alarmists ever discuss the dollar printing

How are these people so skeptical on Bitcoin but so blind on fiat?

>>4744164
Shut up faggot. You fucking retarded dumb fuck nigger. Currency inflation IS communism. The state collects 2% of your purchasing power every year to go fund shitty overpriced public goods and illegal wars. KYS YOU FUCKING BRAINLET KEYNESIAN MONGOLOID.

>>4744230

Why would your money bring loaned into massive quantities, causing its value to fall and causing 10% of your tax dollars to go towards interest be good?

You realize 10% of your time spent working pays interest on a debt that continues to rise while your salary goes down 4% a year?

>>4743692
>Deflation makes sure resources are allocated in the most efficient mannor.
No it doesn't deflation makes sure ressources are NOT allocated, or highly restricted. Think of it as a creature that lays 1 egg total and rears its young for 20 years vs a creature that has a litter of 20 young every year and doesnt rear them at all. After 20 years, which will be more abundant?
Overspending makes sure ressource are generally allocated efficiently because, because badly allocated ressources will lose out to better allocated ones. Think of it as natural selection.

>>4744325
Cry and yell all you want, you retarded nigger, it won't make your point any more valid.

>>4744351
>10% of your income is taxed to pay for interest
>you lose 4% of your income and all cash you hold
>the federal debt still increases annually

>People tell you this is a good thing and you actually spend time supporting this when people point this our to you

You don't have redpilled on Jews but come on man, this doesn't make mathematical sense

>>4744164
>Lots and lots of venture and spending, kys brainlet
That's... exactly my point? You're the one saying people would just hold onto their money if it's deflationary, not me.
Takes a special kind of stupid to call someone else a brainlet while you refute yourself

>>4744338
>what is increasing salaries?
look, morons im not saying insane or as we have now unhealthy inflation is good.

Deflation is good in an asset, not in a currency.
It's not anymore complicated thatn that

>>4744420
do you even reading comprehension?
you just repeated your last post and didn't comment or refute anything in that post

>>4744475
Oh im sorry, did the dollar go up 3-4x every year under the industrial revolution?

>>4744351
I don't exactly understand your analogy, but wouldn't it make more sense to have the the 1 egg reared for 20 years? The 20 eggs are extremely inefficient in determining what the market wants. Could you elaborate on your analogy a bit more.

>>4744111
exactly.
I don't give a fuck if we don't have the fanciest phones or fidget spinners anymore by then. Good houses, food, healthcare etc will always be in demand. people would meaybe finally wake up.

>>4744550
Stop moving the goalposts you stupid fuck
It was mildly deflationary whereas you're saying it must be inflationary in order to facilitate spending.
You're flat fucking wrong

>>4744475
SAVING IS BAD GOYIM

>>4744616
No, think of it this way, you can spend 20 years nuturing one animal, that animal could be struck by lightning regardless of how well you took care of it. If the same happened to one of the 400 other creatures it would just be 1 of 400. You get more chance even if you waste alot of them. Natural selection

It's the same that is mean by the phrase: "you miss all the shots you don't take"

>>4744624
Don't even bother debating him. Note how there is literally one retard battling everyone else in this thread. He won't shut up and won't acknowledge anyone else's points. Chances are he is being paid to promote that view, hence there is not point debating him.

>>4744624
No, i never said it MUST be infaltionary
what im saying is that deflationary assets rewards you for not spending today
while inflationary assets rewards you for spending today. The rest is your conjecture, nigger

>>4744475


Israel is deflating their currency!

Wow what a surprise

http://www.inflation.eu/inflation-rates/israel/historic-inflation/cpi-inflation-israel.aspx

>>4744702
HOLY FUG

>>4742724
They can't. /biz/ is full of retards who have zero understanding of how economics work.