RE: Hive's RC system is deflationary.
You are viewing a single comment's thread:
Well living in a country that experiences constantly inflation, I will always have argued that deflation is an amazing thing but reading this opened my eyes to the fact that there is always a positive and a negative.
In the end, I don't think it is good or bad, it solely depends on who's point of view we are seeing it from.
0
0
0.000
Yes, I agree with you my friend, inflation is the order of the day here. This is also something this post explains, the positive part of inflation. I fall into that category of always letting the bad currency go first. I remember once keeping a $100 note for a year, despite the fact that i needed to get rid if it to take care of myself .Infact,I love deflation, especially when it comes to the way things are sold here. However, The economical way of reasoning should be understood too. That's why It is awesome how @edicted illustrates and drives his point so clearly and simple at this same time.
Yeah, I understood the message passed but never really thought about it that way, you get.
Check Japan over the last 25 years to see how their deflation is serving them.
People seem to believe that deflation is good, inflation is bad. This is something that is so grossly distorted by the theoretical economists who do not operate in the real world.
Deflationary economies have even less tools than those that are inflating. The EU is likely to learn this lesson over the next decade. They are at the bring of a deflationary spell that is going to be very painful.
Posted Using LeoFinance Beta
The problem is that being in a country that has experienced only inflation isn't good either so I understand why the "deflation is good" narrative is pushed especially here.
I guess there needs to be a balance between both for an economy to function properly.