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Deleted Account 1y ago

There will be a time after #Bitcoin is the base layer of the global economy where if it has stabilized or only slowly gains more of a % share of all wealth. When that happens the majority increase of spending power of individuals will come from the deflationary force of technology. Based on the amount of M2 increase it takes to just achieve the feds target CPI inflation rate that number will certainly be greater then 10% as it is already around that today.

Even if the deflation rate is just 10% that means that whatever your bitcoin stack you could continuously spend 10% of it for eternity and your living standard would stay the same. Families that spend slightly less of a percentage of their savings when compared to the deflation rate percentage and are able to successfully teach their children and grandchildren to do the same will create a level of abundance hard to imagine for the the grandparents who started spending modestly. The annual spending of these families will honestly be less then the number of sats I can get on a post, it seems ridiculous but mathematically is true.

Generational wealth is now built off modesty, discipline, and a short time preference rather then fiat exploitation and debt.

#bitcoin #nostr #Lightning #ligbtningnetwork #zap #zaps #proofofwork #pov #satoshi #war #oil #petrodollar #m4 #plebchain #energy #mining #sats #m2 #generationalwealth

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Discussion

curt finch 1y ago

if everybody's sitting around doing that it will slow down progress and that deflationary number will shrink

Hazey 1y ago

No because the frivolous rat race style make-work to keep up with inflation will give way to things we have lost like single income households.

curt finch 1y ago

hope so

Deleted Account 1y ago

Scarcity of the money leads to abundance of everything else.

The willingness of saving the medium exchange as a store of value will simply reduce the number of sats that account for the output of the economy. The incentive to get the deflationary money if you are a human actor or robot/ai will be incredibly high in the short term, you must contribute to bring the cost of production down to do this in a fair economic system.

After you have some sats you buy according to incentives from within rather than ones imposed via inflation. Your consumption will not include unnecessary fiat crap to fill a garage with and will further bring down prices.

Chad Lupkes 1y ago

We have invested for thousands of years trying to get a return on that investment that will exceed the increase in prices over time. Having a form of capital that does not diminish in value is something that we have never had before. Everything drops to utility value against Bitcoin, because the hunt for ROI no longer makes sense. We are not there yet, but when adoption reaches 50%, it will be a whole new world.