Re:Flaws in Bitcoin make a lasting revival unlikely
by chii on Thursday March 28, 2019 @09:26AM
(#19511930)
with deflation, you will only invest in good, safe investments. Taking risks gives less rewards, so you should end up with less speculation and wasted investments. I think deflation makes for a more stable financial world, as it will take away the booms and busts cycles. Economic growth only occurs when real technological and productivity improvements happen, rather than the current way of speculation and wealth redistribution via betting on boom/bust cycles.
With inflation those who get a 2% pay raise stay where they are and those who have wealth lose some and are incentivized to turn it into income which eventually becomes a pay raise.
With deflation people are incentivized to turn their income into wealth which means less pay raises. Meanwhile those who have wealth gain some without doing anything.