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174 sats \ 2 replies \ @Louferlou 13 Oct 2022 freebie \ on: How would you respond to this question about doubting Bitcoin will succeed? bitcoin
Usually the argument of this people is mostly: in a delfationary society, the economy would collapse cause people would indefinitly postpone their purchases.
I often answer that:
- every human has basic needs that needs to be satisfied (home, food, energy, transport)
- some part of our economy is already deflationary despite high levels ofmoney debasment. For exemple computing hardware get cheaper years after years. But did people wait 10 years to buy cheaper the Iphone from 2010 ? No because the opportunity / cost ratio of buying the new iphone each year is viewed as superior than just waiting few years more to have it at a discount.
So in short, a deflationary society don't crumble because people stop consuming. But the 3consumer society" that is so critisized will collapse, cause people will learn about low time preference and its benefits.
Finaly, for the salaries matter, I can imagine a society where salary stays stable more than decrease. It would be a normal thing to have a constant salary, and as all prices around are decreasing in Bitcoin term, this can be considered as a promotion to reward fidelity and experience through time.
I would argue that in a deflationary society people would increase consumption because over time they get wealthier. More wealth = more potential consumption
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This would be admitting than a deflationary society is wealthier, so you win...
Anyway overall consumption would certainly be higher, as everybody is wealthier, but also much more rational as you can plan your future more accuratly than with a melting "store of value" which oblige you to waste your time and energy, investing in bubbles and other nonsensical ans useless assets.
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