Re:Nvidia announces mining GPUs, cuts the hash rate of RTX-3...
by astrange on Thursday February 25, 2021 @05:47AM
(#26261655)
> The definition of inflation is that asset prices go up.
The definition of inflation is typically that consumer prices go up due to there being "more money". The only kind of asset that people consume is housing, and even then they don't really - housing as an asset (purchase price) can be disconnected from its consumption price (rent). Besides that, you can't eat stocks so you don't get poorer when the price goes up.
Assets can actually increase in price because of deflation. For instance, technology getting cheaper has made all the stockbrokers drop their transaction fees and add fractional shares, so now everyone can bid up the same stocks.
The definition of inflation is typically that consumer prices go up due to there being "more money". The only kind of asset that people consume is housing, and even then they don't really - housing as an asset (purchase price) can be disconnected from its consumption price (rent). Besides that, you can't eat stocks so you don't get poorer when the price goes up.
Assets can actually increase in price because of deflation. For instance, technology getting cheaper has made all the stockbrokers drop their transaction fees and add fractional shares, so now everyone can bid up the same stocks.