Replying to Avatar Hanshan

popular misconception, gold has supply inflation.

theres nothing wrong with it, its not unethical or whatever.

and it makes for better money to have low, known supply inflation.
b7
b799e60f... 7mo ago

Gold has inflation because you can mine it. But nobody knows how much the planet still has left. Apart from that, nobody knows exactly how much humanity has already stored. Jesus, not even Fort Knox has been audited in years. You see my point?

My point is simple, thus leaving “popular misconception”: men made inflation is bad in general, therefore, if we can create something that’s deflationary, why would we need something “a-tiny-bit” inflationary to start with?

This is one of the powers of Bitcoin over… any other currency.

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Hanshan 7mo ago

because "inflation is always bad and deflation is always good" is just bad economics.

its pop culture economics espoused by maxis.

deflationary environments are NOT positive and there are good reasons to have known, predictable monetary inflation.

b7
b799e60f... 7mo ago

That’s your point of view.

That's not true. The Austrian School has long seen inflation as harmful, well before Bitcoin existed. Mises called it a deliberate policy that distorts prices. Hayek warned it leads to unsustainable booms. Rothbard said it's theft through hidden taxation. These aren't "pop" takes — they're foundational economic critiques that predate any crypto narrative.

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Hanshan 7mo ago

constant inflation being harmful,

which everyone including Keynes agreed on

doesn't mean they thought a permanently deflationary conditions was preferable.

alternating between inflationary and deflationary is normal market dynamics

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Hanshan 7mo ago

to continue

Mises specifically argued against the sloppy definition of inflation as a simple increase in money supply.

he said if we are to use the term *at all* it should be used as increase in money OVER the demand for money.

in other words, according to Mises, increasing the money supply in line with the demand for money

isn't inflation at all.

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Flix 7mo ago

The classic definition is better, because it is measurable, objective.

The new definition and all its variants is relative and makes intertemporal comparisons very difficult.

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Hanshan 7mo ago

referring to any increase in the money supply as "inflation" is pop economics.

its a convenient shorthand, i do it too

but as Mises points out, its vague and non-technical.