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A comment on The Wealthy Are Hoarding $10B of Bitcoin in Bunkers. Parent comment

Re:The Wealthy Are Hoarding $10B of Bitcoin in Bunkers by theseatoms on Wednesday May 09, 2018 @11:22AM (#17030508)
A deflationary currency regime would raises the bar for both investment and consumption. Investors would be choosier about speculative opportunities because the yield on the risk-free asset would be much, much higher. Consumers would still buy essentials, but they'd be extremely incentivized to hold currency rather than spend it.

Regardless of whether or not a deflationary end-state is better or worse, it seems non-controversial that the transition from our current situation to a deflationary one would be absolutely brutal. We're talking about turning the global economy on it's head.

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Re:The Wealthy Are Hoarding $10B of Bitcoin in Bunkers by algo646464 on Wednesday May 09, 2018 @11:52AM (#17030785)
> Investors would be choosier about speculative opportunities because the yield on the risk-free asset would be much, much higher.

It won't help how choosy investors are, or how well the economy performs. The money supply is fixed. So for someone to make 120 bitcoins from an investment of 100 bitcoins, someone else has to lose 20 bitcoins, which would be other investors, or the public (workers / consumers).

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Re:The Wealthy Are Hoarding $10B of Bitcoin in Bunkers by TomMarius on Thursday May 10, 2018 @04:10AM (#17037136)
Or Bitcoin grows its value.
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Re:The Wealthy Are Hoarding $10B of Bitcoin in Bunkers by simias on Thursday May 10, 2018 @05:12AM (#17037321)
Bitcoin growing its value (deflating) is precisely the problem because then you have no reason to take the risk to invest in the first place since you'll reap the benefits by merely doing nothing and holding your coins that keep getting more valuable.
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Re:The Wealthy Are Hoarding $10B of Bitcoin in Bunkers by TomMarius on Thursday May 10, 2018 @12:08PM (#17040159)
At the same time, it allows you to put brakes on your investment ("lose only up to the deflation!") and invest more. And since your other savings are growing in value as well, you are able to invest more and into more risky projects.
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Re:The Wealthy Are Hoarding $10B of Bitcoin in Bunkers by mkirklions on Wednesday May 09, 2018 @12:35PM (#17031255)
>the transition from our current situation to a deflationary one would be absolutely brutal.

We currently have many currencies, if Bitcoin is so absurdly better, then maybe there would be a transition. Otherwise I'm sure many currencies will be used based on the application.

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