50 sats \ 1 reply \ @joda 29 Feb \ on: Convince me I am wrong about these bitcoin themes meta
GREAT POST! This is the kind of stuff I think about and argue with economists about.
To your second point--
Firstly, by your own argument, development is disincentivized because developers would rather keep their money as it appreciates in purchasing power. Allocating capital is anti-productive to profit. So, new housing will not be built unless it is very profitable to do so. Therefore scarcity will drive up the price of housing until it is profitable to build.
Also keep in mind that prices of inputs are going down in Bitcoin terms: land, materials, labor. So will the developer wait indefinitely to build?
Secondly, banks are not incentivized to give the developer a loan to build, or YOU a mortgage, unless the investment will yield better returns than just HODLing.
So what do you think will happen?(honestly; I don't know): will people choose to be homeless and eat beans as their Bitcoin purchasing power goes up?
I don't know either.
Maybe it would become so common that it actually doesn't affect my decision making. I would want to save my bitcoin to have more money, but what is the point of saving it if I don't spend it? If btc purchasing power keeps increasing indefinitely (at least during my lifetime), I certainly wouldn't put off buying a house indefinitely. As many commenters have pointed out, I think the solution would probably be smaller houses and whatnot.
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