Replying to Avatar Hanshan

Tbh i don't think you're really wrong. an equilibrium will be reached and there will still be investment.

but in setting up a permanently deflationary condition, we are actively discouraging it.

the more economic growth that exists, the greater the incentive for each individual to not invest.

in addition to my concerns about setting the barrier to entry too high, its just a bad incentive structure to have everyone profit at the expense of those who actually generate economic activity.
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Earnest Holden 7mo ago

Bitcoin is going to teach us that our hurdle rate for investing has been artificially low for almost a century.

Many investments that look as if they are NPV positive when viewed through the lens of an inflating currency are, in reality, value-destroying.

Discouraging bad investments is not a bad thing.

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Hanshan 7mo ago

I agree about the hurdle rate and its understandable after decades of irresponsible debasement everybody is excited for deflation.

but to just set the hurdle rate as high as we fucking can is PTSD and not good economic thinking.