News for hackers. Stuff that matters.

A comment on Bitcoin breaks above $20k. Parent comment

Re:Bitcoin breaks above $20k by spurgu on Wednesday December 16, 2020 @01:57PM (#25446783)
> if you look at processing power as a currency, it is actually undergoing hyperinflation

So in relation (for this particular scenario) the USD is undergoing hyperdeflation..?

Whatever you call it the psychological effect with computers is the same as with a rising bitcoin price - you get more bang for the buck the longer you hold off on your purchase.

[ Parent | on HN ]
Re:Bitcoin breaks above $20k by a1369209993 on Wednesday December 16, 2020 @02:16PM (#25447103)
> So in relation (for this particular scenario) the USD is undergoing hyperdeflation..?

Relative to computers/processing power, yes, although you generally wouldn't describe it that way, since USD is (comparatively) stable with respect most other stores of value - it's computers that are changing in value, so it's computers that should be described as undergoing inflation.

Relative to (the relevant average of) other stores of value, dollars are undergoing inflation, just more slowly than computers.

[ Parent | on HN ]