Hacker News Reader

Agreed. It's the difference between deflationary assets and inflationary currency. Bitcoin's core, fundamental problem is that it's deflationary. Therefore it will never be useful for economic transactions, because any society which fully commits to bitcoin as their currency will have their economy grind to a halt. Why would I buy a new car today when it's going to be cheaper tomorrow?

There's a reason why the Fed targets a ~2% inflation rate for the USD.

View on HN

That and the energy cost, both direct as well environmental.

It always surprises me how little cryptocurrency advocates seem to understand basic macroeconomics and unintended consequences, especially on sites like this.

Think again. You have been brainwashed. You buy a car so that you can go to work. You know that the car produces more value than 2% deflation. You don't buy the car if you don't have a job.

What happens to economy if people buy only things that last a very long time or things that increase their productivity? What happens to economy when companies are forced to produce those things?

Inflationary economy is a total disaster. We produce things that don't last to consume things that don't last. Insane amount of human work output is wasted.

If you measure economic growth by amount of pointlessly running in circles, then yeah inflation is good for economy.

Reply on news.ycombinator.com