Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: CharlesWayneCT
Oops. I waited one hour, and all the prices at the bitcoinstore just went up by 3 bucks a bitcoin.

Uh no.

That's deflation, a rise in the value of the currency. Your previous rant is way way off the mark. The digital economy of the future is going to have a digital currency like bitcoin. It is pointless to compare it to prices in the real world economy and claim that it fluctuates too much mainly because it is not used in the real economy.

In the digital economy bitcoin prices are fairly stable. People offer to do very small amounts of work for very small amounts of bitcoin. Productivity is soaring and bitcoin is the reason. The typical white collar "knowledge worker" is about to go the way of the dinosaur. Instead of a juicy salary to sit around and piddle on a computer for days on end, a digital economy worker will produce a specific product in a specific time and move onto the next project. Some will take seconds.

Eventually posts like yours will go to dinosaur land too. Inaccuracies like not knowing the difference between inflation and deflation will not get the microreward and you will end up paying to post. You need to read up, understand, and embrace the new reality.

76 posted on 03/02/2014 7:14:00 PM PST by palmer (There's someone in my lead but it's not me)
[ Post Reply | Private Reply | To 55 | View Replies ]


To: palmer

You were incorrect. The PRICES went up on the items they were selling, because the cost of a bitcoin dropped relative to the dollar. So where the previous hour one bitcoin would purchase $571 worth of goods, the next hour it would only purchase $568 worth of goods.

This of course could have meant that the dollar went up in value, rather than the bitcoin going down in value.

But you have also pointed out the problem with bitcoin if it is RISING in value — because a currency rising in value is deflation. And in a deflationary environment, people stop buying things because they expect that if they wait a day, they’ll get the same item cheaper.

Which means the economy grinds to a halt.


78 posted on 03/02/2014 9:33:07 PM PST by CharlesWayneCT
[ Post Reply | Private Reply | To 76 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson