iris
Post by Dakota
Kanzan
#bitcoin maxis will talk about SoV, hodl till you die, cent/sat parity, "generational wealth" all fucking day long but point out that deflation conditions (ie a fixed amount of monetary units and growing economy) disincentivize spending and investment, and they lose their fucking minds.
ManyKeys
Another example of dishonest argumentation from the #monero folks whose only aim is to attack and discredit #bitcoin's design.
ManyKeys
Under the fiat system, standard practice, investors discount future cash flows for inflation because they know the money will be worth less later. However, with Bitcoin, the opposite happens: future purchasing power is likely higher than today’s, due to its fixed supply and increasing adoption. So
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S!ayer
right?
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Ape Mithrandir
Discouraging unnecessary spending and investment is desired for a good society. The fiat debasement which encourages all manner of unnecessary fuckery such as financial engineering, share buybacks etc is not desired. One could argue about the right amount of monetary deflation and there is nuance t
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Skipper
the way you write and format your posts makes them unreadable
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Papa Figos
This one I have to disagree with you. Take computers. For the last decades if you wait a year you can generally buy more for less. And yet, people still buy computers today. Why? Our time is finite. Having the potential to buy but never doing so means nothing. At some point you want to make use o
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2Pac
You got it, deflation caused by technological advancement or increased productivity is not a negative. Very different than deflation caused by a credit bubble or monetary contraction.
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M0053
I live this today. Another way of looking at it is you have no idea what you have left in time and resources. You have no idea what the future holds. You do not know if what you thought was secure would someday not be secure.
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ManyKeys
You’re stuck in a fiat paradigm that confuses endless spending with economic health. Bitcoin doesn’t punish investment — it punishes wasteful investment. If your business can’t outperform a savings account, maybe it shouldn’t exist. That’s not a flaw, it’s a filter. Your shallow dismissal shows you’
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mister_monster
Man what a discussion you guys are having. Youre not wrong you know, if your investment can't outperform a savings account it is not a worthwhile investment. But there's a problem with hard cap currency, it's worth noting no such currency existed in the world, ever, except bitcoin. That problem is
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ManyKeys
You’re right, a hard cap introduces new dynamics like passive rent-seeking where some benefit without contributing. But that’s not unique to Bitcoin, fiat has its own version with the Cantillon effect. The difference is Bitcoin’s version gets better over time. As the market matures and price stabili
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mister_monster
> As the market matures and price stabilizes the free ride shrinks. How does that work out? I thought we established that as economic output goes up so must the purchasing power of a supply capped currency? The only outcome in that case is downward pressure on economic production. It's cool to me
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ManyKeys
As Bitcoin’s market cap grows, the relative impact of new economic output on its price diminishes. Early on, small gains can create massive price spikes, supercharging the incentive to hold. But as Bitcoin matures into a massive, stable asset, each new unit of GDP adds less and less upward pressure
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Ape Mithrandir
Bitcoin will do fine 50 years from now when the world is in the midst of a self induced population epidemic and the idea of positive global economic growth has been completely abandoned. By the time the supply cap has been hit in 2140 the world will have experienced a near 50% collapse in population
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Papa Figos
But you are contributing. Helping stabilize the price by not being a lousy paper hands, becoming more invested in the network because your savings depend on it, giving credibility and social proof to the system so more risk-averse others can also make use of it in time, etc.
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Nadia
This is so sharp. Ideologies shut down these types of conversations.
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ManyKeys
I stand by my thesis.
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2Pac
Well if everyone holds the currency since we are assuming this is the dominant currency to have control over the economy. Then everyone would get this effect meaning it would raise standard of living. Like you said no other currency has a hard cap so all we are saying all of us is theoretical becaus
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mister_monster
You can't increase standard of living with numbers, you can only increase standard of living with production and economic growth. Numbers are how we measure that, once a metric becomes a goal it ceases to be a good metric. But since it's an adversarial system, that doesnt mean people will go "bette
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ManyKeys
And for fwiw, I'm not a bitcoin maxi and own monero along side bitcoin. Nonetheless, I believe in sound money. Bitcoin is just the closest thing we have to sound money. You wouldn't get it with your fiat mindset. I wasted half a day to no avail. Bye, now.
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YODL
I do not like this take 😤
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Keith Meola
People will be always be incentivized to spend because they need to live their lives and enjoy them
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Dakota
Is that a bad thing or is it just different?
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