Big Barry Bitcoin on Nostr: Jeff Booth I am listening to your pod with Natalie and you asked for someone to poke ...
Jeff Booth (nprofile…4hxr) I am listening to your pod with Natalie (nprofile…fk5y) and you asked for someone to poke a hole in your theory that everything is deflationary.
I have the following thoughts. Happy to brainstorm this if you are.
1. You say Bitcoin is a measure of how deflationary everything is, however do you then reject the idea that "bitcoin is underpriced", and that bitcoin is still being adopted?
If either if those are true, then how do you identify how much of the growth is adoption and price discovery vs deflation?
(I am 9 mins in, so I suspect there might be further clarification in the video but this is my thought so far)
2. The MAIN thing that I am struggling with is the idea that anything can be infinitely deflationary. What is the chance that really what we are seeing is efficiencies in one area causing knock on effects to lead to deficiencies in another area?
To expand that thought and give a concrete example, let's say a new product comes to market. It is a new fruit that has such great properties, everyone is starting to want it in their diets.
Increase in demand makes more resources for that business and more resources mean that the company can invest in efficiencies.
Meanwhile, all other products like potatoes for example were cheap, but people cannot afford both potatoes and this new fruit. This will drive demand down, reduce resources, now the potato farmer must find ways to reduce the cost. People still need potatoes, they just can't afford both things that they need.
Potato farmers or their competitors produce cheaper potatoes using pesticides and other chemicals. This is a form of inflation, quality is getting worse.
Now the fruit industry is getting cheaper and people can afford both potatoes and fruit, but by now, the quality of potatoes is lower and it is uneconomical to grow quality potatoes because the existence of poor potatoes that seem to be "cheaper potatoes" only in people's eyes is always going to drive demand away and stifle such a business of quality potatoes.
Most things in reality is bounded by the laws of thermodynamics.
Doesn't it make more sense that efficiencies in one place come at the cost of another in a world where the money supply is fixed? Maybe not absolutely directly, as we can create processes and ideas that can have lasting effects.
What would happen if we ask whether things were naturally inflationary? Would we find examples of how things become harder to produce?
I consider a drop in quality to be inflationary. Where do you stand on that? Not every "change" is a drop in quality either, just to be clear.
But I wonder if things like producing quality olive oil cannot be improved further and scaled massively. Does this apply as an inflationary product, especially as demand would naturally grow with an ever expanding population.
I'll leave it there, let me know your thoughts and rebuttals. ❤️
I have the following thoughts. Happy to brainstorm this if you are.
1. You say Bitcoin is a measure of how deflationary everything is, however do you then reject the idea that "bitcoin is underpriced", and that bitcoin is still being adopted?
If either if those are true, then how do you identify how much of the growth is adoption and price discovery vs deflation?
(I am 9 mins in, so I suspect there might be further clarification in the video but this is my thought so far)
2. The MAIN thing that I am struggling with is the idea that anything can be infinitely deflationary. What is the chance that really what we are seeing is efficiencies in one area causing knock on effects to lead to deficiencies in another area?
To expand that thought and give a concrete example, let's say a new product comes to market. It is a new fruit that has such great properties, everyone is starting to want it in their diets.
Increase in demand makes more resources for that business and more resources mean that the company can invest in efficiencies.
Meanwhile, all other products like potatoes for example were cheap, but people cannot afford both potatoes and this new fruit. This will drive demand down, reduce resources, now the potato farmer must find ways to reduce the cost. People still need potatoes, they just can't afford both things that they need.
Potato farmers or their competitors produce cheaper potatoes using pesticides and other chemicals. This is a form of inflation, quality is getting worse.
Now the fruit industry is getting cheaper and people can afford both potatoes and fruit, but by now, the quality of potatoes is lower and it is uneconomical to grow quality potatoes because the existence of poor potatoes that seem to be "cheaper potatoes" only in people's eyes is always going to drive demand away and stifle such a business of quality potatoes.
Most things in reality is bounded by the laws of thermodynamics.
Doesn't it make more sense that efficiencies in one place come at the cost of another in a world where the money supply is fixed? Maybe not absolutely directly, as we can create processes and ideas that can have lasting effects.
What would happen if we ask whether things were naturally inflationary? Would we find examples of how things become harder to produce?
I consider a drop in quality to be inflationary. Where do you stand on that? Not every "change" is a drop in quality either, just to be clear.
But I wonder if things like producing quality olive oil cannot be improved further and scaled massively. Does this apply as an inflationary product, especially as demand would naturally grow with an ever expanding population.
I'll leave it there, let me know your thoughts and rebuttals. ❤️