34 upvotes, 6 direct replies (showing 6)
View submission: Don't invest recklessly
Bitcoin price, yes.
Assuming a Bitcoin world, purchase prices would gradually fall. The opposite of today's way.
Comment by supra05 at 30/11/2017 at 13:39 UTC
7 upvotes, 1 direct replies
Wouldn’t you just be able to mine more?
Comment by adambergkvist at 30/11/2017 at 13:14 UTC
2 upvotes, 0 direct replies
Aaah. Now I understand.
Comment by deuteragenie at 05/12/2017 at 14:17 UTC
2 upvotes, 1 direct replies
Not so sure about that.
That assumes that producing goods, for example is "cost constant". That would ultimately depend on what type of goods is being considered. Some of them may require more energy to produce over time, etc. etc.. So I would not necessarily draw the overly simplistic conclusion that in a BTC world, purchase prices would decrease over time.
Also, I am not sure of costs of services. Would be interesting to read what economists have to say about this. r/stiglitz are you there?
Comment by Ghyslain333 at 17/12/2017 at 07:30 UTC
1 upvotes, 0 direct replies
That is stunningly correct. One would be wiser to wait later to make use of its purchasing power rather than using it today. Would that translate to the end of the ever lasting growth that capitalism thrives on? Or would it simply damper it a little?
Comment by mutua_fides at 19/12/2017 at 17:35 UTC
1 upvotes, 0 direct replies
Not sure what you mean by 'assuming a Bitcoin world'. I believe that today we live as much in a Bitcoin world as in a Gold or Dollar world.
That having said, increasing Bitcoin prices is not necessarilly what is going to happen. Yes, the number of Bitcoins is finite and will gradually decline, but that does not necessarilly mean that the price of BTC has to go up. The price of BTC is driven by the value people assign to it. There is no underlying intrinsic value. Although the fact that the number of coins will decrease over time may increasing the likelihood of prices rising with time, this is by no means certain.
Comment by [deleted] at 05/01/2018 at 02:40 UTC
1 upvotes, 0 direct replies
Which is terrible. Deflation is one of the scariest things you can experience as a central bank.