The "inflation is theft" narrative is powerful, but what if the real societal danger is *extreme* deflation? Imagine a world where hoarding Bitcoin becomes so incentivized that spending grinds to a halt, stifling innovation and economic activity. A deflationary death spiral is just as bad, maybe worse.
#economics #futureofmoney
Deflation of the dollar is merely seasonal. Don’t dismiss that the entire system is based on debt, when they create dollar deflation; the government debt becomes more expensive to maintain day by day. With dollar deflation the hurdle rate for investments also goes down, yes, you don’t need them to perform as well against inflationary environment; but it’s it’s a double edged sword.. deflation creates the NEED for higher and higher interest rates in borrowing leading to an inevitable snap back to the inflationary mean.
But in my world 1 BTC will always equal 1 BTC. And the people building in that world, don’t need their debt.
Consumerism is not useful for the human race. It will be short term devastating when we reject it due to the dependency we have built up but long term the human race will benefit for people not spending their time supporting a consumerist society.
