crazy how deflationary conditions disincentivize spending
Discussion
It will surely push back on current mindless consumerism, which is not a bad thing per se.
it will push back and more
it will eliminate mindless consumerism and then destroy investment
Not sure why it would destroy investment.
Prodcuers are always looking to optimize and increase efficiency. Couple this with dimishing volatility that should come with higher capitalization of bitcoin, and people will see more value in continuing increasing production efficiency rather than just holding an asset with lesser returns netted through flat price of the asset being held.
Matt said why
I don't care what Matt said.
I can think for myself.
do you run a Bitcoin business?
if not, maybe take a clue from someone who does.
the note says they expect to LOSE money because of Bitcoins deflationary nature.
your word salad is just armchair fantasy.
What I said is a logical argument that stems from free-market dynamics. You are just quoting some dude that has a lot of money to spend on shitty projects.
"producers will become more efficient" isnt a "logical argument that stems from free market dynamics"
you make it sounds like a graduate thesis.
the fact is
increases in efficiency will have to AT LEAST beat the rate of deflation.
and as our example illustrates
it isnt easy to do.
Bitcoin is a deflationary SoV, why spend if you just end up with less purchasing power?
inb4 "muh theoretical increases in efficiency"
Under the fiat system, standard practice, investors discount future cash flows for inflation because they know the money will be worth less later.
However, with Bitcoin, the opposite happens: future purchasing power is likely higher than today’s, due to its fixed supply and increasing adoption. So instead of discounting for inflation, you apply a premium for Bitcoin’s appreciation.
The result? Even if an investment returns fewer bitcoins in the future, the real buying power could be far greater. Just as we adjust for loss under inflation, we can adjust for gain under deflation. This flips the script: sound money doesn’t kill investment — it makes it more intentional, more productive, and more aligned with long-term value creation.
except on a Bitcoin standard
like Matt
you spending Bitcoin now
to get less Bitcoin later
why risk it
if your money is going to appreciate anyway?
You take risk if the reward in real terms is worth it. That’s how wealth creation works.
except in a deflationary environment the deck is stacked against you
If we are just defining inflation and deflation based on prices of good/service going up or down, then bitcoin has inflation at least once every 4 years, HUGE inflation. I’d argue you’re more likely to spend when pricing are going down then up. I spend more bitcoin when shit is cheap then when it’s expensive in bitcoin terms.
its isnt worth arguing about.
when prices are falling, people delay spending.
its just a fact.
Inflation we’re fucked
Stagflation we’re fucked
Deflation we’re fucked
The world is round or flat
It’s fucked
Come on now, this isn't a rocket science, just basic macroeconomics applied to an unconventional monetary environment.
You said, “except in a deflationary environment the deck is stacked against you.” But that’s not how it works. As Bitcoin matures and its price becomes more stable, its appreciation slows – just like with any large, established asset. This means the return you need to justify investment goes down. Look at like risk-free rate going down.
Eventually, even modest productive gains look attractive compared to just holding Bitcoin. Deflation doesn’t punish investment — it raises the bar. Only the best ideas get funded.
That’s not the deck being stacked against you, it’s the market rewarding real value instead of noise.
nobody knows where equilibrium will be reached.
deflationary environments penalize spenders.
its just a fact.
just saying
"aha! but if you create value faster than then money increases it doesn't"
isnt news.
it just depends on details and nuance nobody knows the answer to.
like "how fast is the economy growing" and "how do credit markets work on a hard money standard"
so its pointless to argue about.
Spend harder bro. Monero is pumping too much
