Crusty 👨💻 on Nostr: I think you don't pay more, you just lose the deflation, its value increase. TLDR; ...
I think you don't pay more, you just lose the deflation, its value increase.
TLDR;
The more money you save in bitcoin, the more deflates.
I was pondering on living with a "deflationary currency". And I just realized if you store your money in bitcoin, it is as close as it gets to live with a deflationary currency.
I think, with a deflationary currency you would still get price swings. The cost of goods in bitcoin (if it is THE money) would depend on the amount of goods. So saying, if in a year, there are less breads then in previous year, bread would cost more in that year. But this would only impact the bread prices, not all other prices, in contrary to an inflationary environment.
TLDR;
The more money you save in bitcoin, the more deflates.
I was pondering on living with a "deflationary currency". And I just realized if you store your money in bitcoin, it is as close as it gets to live with a deflationary currency.
I think, with a deflationary currency you would still get price swings. The cost of goods in bitcoin (if it is THE money) would depend on the amount of goods. So saying, if in a year, there are less breads then in previous year, bread would cost more in that year. But this would only impact the bread prices, not all other prices, in contrary to an inflationary environment.