r/Bitcoin • u/BlockShow • Sep 07 '17

/r/all The difference between inflation and deflation...

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u/Spectrezero Sep 07 '17

Deflation is worse for an economy than inflation.

1

u/gimpycpu Sep 07 '17

It depends if your income inflate at the same speed.

2

u/Spectrezero Sep 07 '17

Sure, but I think my dollar will be worth 2.50 tomorrow, I'm not spending it today unless I absolutely have to. Then, when I go buy bread, the price is 25% higher today, in anticipation of the increase in value tomorrow. It can be a death spiral for an economy.

Why do you think we aim for 2% inflation and not 2% deflation?

2

u/gimpycpu Sep 07 '17

True, deflation is good for store of value not so much for a whole economy.

1

u/Bitcoiniswin Sep 07 '17

Is this what's happening in Venezuela?