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RE: The role of Bitcoin in the future - why inflation matters
Good point, information technology features falling nominal prices, as long as technology keeps improving. The whole point is that informational technology is not the whole economy. Our world would be quite different if all of us were to work in the IT sector and all our consumption were just IT products and this is what the article is about.
True but it is a growing portion of the world economy and the deflationary forces are so powerful.
Over time, I believe this will overwhelm the rest of the economy since it penetrates every industry.
Interesting point. It is true that there is deflationary pressure through digital transformation, but ultimately the price level is determined by the money supply. This is surely something to think about for central bankers.