It's a common misconception that an appreciating currency won't be spent. Everyone has needs/expenses that can't be put off. Food, rent, basic services, and productive goods and services. 1/
2/ It's quite weak to say, "most products won't be bought if people have a higher propensity to save," because that's admitting most products are only bought now because of inflation.
3/ Of course, that's not true for many items today. They are bought and/or consumed because they are productive in some way.
#Bitcoin will be spent on productive goods. No one can rationally claim that people would rather save than survive.
#Bitcoin will be spent on productive goods. No one can rationally claim that people would rather save than survive.
4/ These critics apparently don't understand the process by which things become more valuable.
Human action and valuations cause relative price movements over time.
Over time, if hoarding is detrimental to the economy, people will hoard less and spend more, or vice versa.
Human action and valuations cause relative price movements over time.
Over time, if hoarding is detrimental to the economy, people will hoard less and spend more, or vice versa.
5/ "People won't spend with deflation." Won't spend on what? Relative to what?
Yes, people will accumulate more capital (save more). Also called, getting wealthier. And spent on basics.
If saving made you poorer, you wouldn't do it, hence why people spend during inflation.
Yes, people will accumulate more capital (save more). Also called, getting wealthier. And spent on basics.
If saving made you poorer, you wouldn't do it, hence why people spend during inflation.
