Bitcoin and Deflation
Bitcoin was deliberately designed to be deflationary.
Most economists believe this is a bad thing but they have no evidence for this belief. They have all kinds of theories (all of which can be easily debunked) which lead them to ideas of deflationary spirals etc. but unfortunately for them history is not on their side.
While we can point to any number of inflationary spirals which have destroyed economies they can't point to a single historic case of where deflation was bad for an actual economy or where one of these so called deflationary spirals occurred. The truth is there is no such thing as a deflationary spiral.
In fact the best period of economic growth in the US was during the second half of the nineteenth century which was an almost constant period of monetary deflation.
I could explain exactly how this works but it would take a lot of time. What I think is more important for most people to understand is that this argument is a highly political one rather than an economic one.
You see, Deflation by it's very nature tends to distribute wealth, while inflation tends to concentrate it. (like we see today) This is why the status quo want us to fear deflation and constantly promote these ridiculous anti deflationary theories which have no basis in reality.
Not many people know that..ye know
I think the deflationary nature of BTC is an often overlooked feature!
You can say that again. I'm just writing a new article on why I believe Steem isn't doing too well.
I'm sure you can guess what my conclusion is.
BTW. raddog, I'm sure I came across a comment by you earlier today. It must have been on
steemsilvergold where they go your name wrong. Small World :)
yes, lol they fixed it though and I even won a prize, sometimes it's better to be lucky than good! I'll look forward to the steem article.
My P.C. Theory isn't about "inflation' or "deflation"... It's not about any Melt or Burn Value... It's about the Tool We use to Measure Value... I figured out a way to "remove and replace" all Federal Reserve Notes and Pay off the interest on the National Debt... I got the impression you didn't like "The Plan"... From what I read above, you seem to have a good head on your shoulders... But in my opinion, it's all Pre-Pocket Change Theory... None of the Financial Guru's are aware of my Theory yet... I think you should come over and read a Dozen or so of my Posts... I have at least 360 posts that take a Peek at my Theory from all different angles...
IN GOD WE "TRUST" THE PLAN...
I'm sorry. I tried. I read about have a dozen of your posts but I can't make out what the basis of your PLAN is.
You say " It's about the Tool We use to Measure Value... ". What tools are you referring to?
Also I can't see why anyone would be happy to accept a cent for a dollar note and also there's the fact that only a tiny percentage of dollars is in notes, as most of it is just ledger entries, bonds, share certificates, etc.etc.
Great Questions... The Basis of my P.C. Theory can be found in Article 1, Section 8 of the U.S. Constitution... Congress has the Power to Coin Money and "regulate" the Value thereof... That is the Foundation upon which a new U.S. Trade Dollar and the U.S. Crypto-Dollars and Decimal Cents shall be Built... The Plan is to Remove and Replace all Federal Reserve Notes... World Wide... Money is a Tool to Measure Value... It can be Paper U.S. Trade Dollars, Physical U.S. Coinage or U.S. Crypto-Dollars and Cents... One Cent will have the same Purchasing Power as the soon to be removed Federal Reserve Note Dollar... No one will lose Purchasing Power, due to the Reset of all U.S. Coinage... Any amounts you mentioned in the Ledger Entries, Bonds, and such will all be Reset using the Reset Purchasing Power of all U.S. Coinage... If my Pocket Change Theory is correct, it will be a United States Monetary Reset...