Yes
and gold has monetary inflation.
under a fixed number of monetary units it can AT BEST be a deflationary environment.
either that or a depression.
Bitcoiners touting that situation as a cure to our economic woes are ignorant.
deflationary conditions have definite downsides.
Yes gold does have a small monetary inflation that requires real work and investment to create and was not done by a simple keystroke for any amount. Bitcoin also has monetary inflation until 2140 but you know this.
Well it depends on the cause, if deflation is caused by a drop in demand it could be bad but if it a result of increased efficiency and productivity it is not bad. We see this is technology products like tvs and other electronics.
A natural recession is favourable over the manufactured boom and bust cycles of a fiat system. Created by injecting huge amounts of liquidity then cranking up interest rates when inflation gets “out of control”.
The problem as you know if there is no good price signal because of fiat everything is manipulated my increasing money supply, bail outs, mal investment, interest rates, and government intervention and regulation that favours the top at the expense of the general population.
I've done some thinking on this topic.
Not so sure a deflationary money is necessarily a bad thing...
Could you elaborate a bit more on what the definite downsides are? I think I know the direction you're going w/ this (delay of spending, economic depression), but would appreciate more of your thoughts
we all know that highly inflationary situations incentivize reckless investment
im thinking that "highly inflationary" is more than a 5% increase on monetary supply *over economic growth*
but the cure isn't to go straight deflationary
because of all the reasons (which are true reasons!)
with a known monetary policy (hard cap or not) a equilibrium will be reached.
i highly doubt that a purely deflationary environment (as with a hard cap on the # of units) is the best equilibrium for human flourishing.
and I think we are already seeing why that is.
