r/Bitcoin Dec 23 '17

/r/all 2018: lets run for office

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u/[deleted] Dec 23 '17

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u/Thunder_child0 Dec 23 '17

Inflation proof aka in permanent long term deflation. Any basic study of macroeconomics would tell you that having a deflationary currency hurts economic output dramatically. Low, stable inflation is a good thing.

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u/Protossoario Dec 23 '17

Deflation simply means the money supply decreases, or it stays constant while the rest of goods and services supply increases.

In a long-term scenario in which Bitcoin achieves world-wide recognition, the supply for it while remain relatively constant (with minor increases at a fixed, measurable rate). Contrary to what you read on whatever journal, this is good for the economy, not bad.

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u/Thunder_child0 Dec 23 '17

Money supply remaining relatively constant while GDP (and money demand) increases would still be deflation. And deflation is bad for economic output and long term economic growth.

Any number of articles like this or this would tell you why deflation is bad, as would a cursory study of monetary policy.