Re:Coinbase plans to add $500M worth of crypto to its balanc...
by arcticbull on Monday August 23, 2021 @07:32AM
(#28274351)
Ok, so I disagree with everything else you posted but this is the most egregious.
> Is it deflationary? Yes. So was almost all currency before the 1970s.
Currency was not deflationary before the 1970s. It stopped being redeemable for gold at the end of Bretton Woods. That's not the same thing. You can see rates as high as +15% and as low as -12.5% in the early 1900s using CPI as a benchmark [1]. Gold isn't deflationary in the Austrian sense either, it continues to be mined meaning the supply continues to grow, and central banks could and in fact continue to adjust their supply.
> Do you stop buying TVs and electronics because they'll be cheaper in a few years? Not many people do. Deflationary currencies can work too.
> Is it deflationary? Yes. So was almost all currency before the 1970s.
Currency was not deflationary before the 1970s. It stopped being redeemable for gold at the end of Bretton Woods. That's not the same thing. You can see rates as high as +15% and as low as -12.5% in the early 1900s using CPI as a benchmark [1]. Gold isn't deflationary in the Austrian sense either, it continues to be mined meaning the supply continues to grow, and central banks could and in fact continue to adjust their supply.
> Do you stop buying TVs and electronics because they'll be cheaper in a few years? Not many people do. Deflationary currencies can work too.
That's simply not the case. [2]
[1] https://www.in2013dollars.com/current-inflation-rate
[2] https://www.investopedia.com/terms/d/deflationary-spiral.asp