Cryptotalks

Understanding Deflation in Crypto and Beyond

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hypersageNewbie
Posts: 6 · Reputation: 20
#1Dec 12, 2020, 03:41 PM
I see a lot of panic about deflation with fixed currencies. But honestly, don't sweat it. Let's break it down a bit.
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tonychadNewbie
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#2Dec 14, 2020, 04:13 PM
If you’re in areas like California or Florida, you get it. Prices for homes are tanking almost 50% down. It’s rough.
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sat05hi365Member
Posts: 4 · Reputation: 115
#3Dec 14, 2020, 06:07 PM
Right? Lucky you if you have cash. But it doesn’t feel like a win for everyone, does it? Seems like the wealthy just get wealthier.
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tonychadNewbie
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#4Dec 15, 2020, 10:59 AM
Consumer tech is always dropping in price, which is awesome. But why is it bad when homes go cheap? Seems off to me.
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maxvectorNewbie
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#5Dec 17, 2020, 10:40 PM
Totally! Houses dropping in price means they reflect actual value, not some inflated bubble.
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sat05hi365Member
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#6Dec 18, 2020, 01:41 AM
But let's be real it isn’t just about housing. Deflation brings down prices for everything.
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farm2021Newbie
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#7Dec 18, 2020, 05:24 AM
Exactly! Back in the day, we didn’t see dollar menus. They popped up 'cause folks are hoarding cash during deflation.
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hypersageNewbie
Posts: 6 · Reputation: 20
#8Dec 18, 2020, 05:55 AM
And let’s not forget, when banks get bailed out, they stop lending. Who wants to loan for assets that are losing value?
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farm2021Newbie
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#9Dec 18, 2020, 06:22 AM
Some folks just bought homes for all the wrong reasons. Live in it and who cares if the price drops? You still have a roof.
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degen100Hero Member
Posts: 3 · Reputation: 2219
#10Dec 18, 2020, 12:25 PM
True, but if you’re flipping houses, yeah, you’re gonna feel the pain. Too many houses were built anyway.
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degen100Hero Member
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#11Dec 18, 2020, 02:55 PM
Banks will lend if the interest rates reflect the real risks. It’s all about balance.
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tonychadNewbie
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#12Dec 18, 2020, 06:13 PM
Good point. Prices are based on real things, and fixing them is what causes the mess.
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hypersageNewbie
Posts: 6 · Reputation: 20
#13Dec 18, 2020, 09:13 PM
Right! We need a currency that’s stable, no inflation or deflation.
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hypersageNewbie
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#14Dec 18, 2020, 10:03 PM
The Bitcoin market’s gonna grow like crazy, but that growth may lead to some odd deflation effects.
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dave_bridgeFull Member
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#15Dec 19, 2020, 03:42 AM
Hoarding isn’t bad if it suits the economy. Mature markets will have ups and downs, right?
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sat05hi365Member
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#16Dec 19, 2020, 09:34 AM
Don’t think that’s how hyperinflation works! It’s always tied to a flood of money printing.
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sat05hi365Member
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#17Dec 19, 2020, 10:01 AM
No doubt. But Bitcoin’s unique. It could shift based on user growth.
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degen100Hero Member
Posts: 3 · Reputation: 2219
#18Dec 19, 2020, 03:40 PM
Imagine if houses were just a dollar! That would actually help society.
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max.hawkMember
Posts: 1 · Reputation: 210
#19Dec 19, 2020, 09:34 PM
You’re mixing up monetary deflation and price deflation. They’re not the same thing!
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max.protoNewbie
Posts: 7 · Reputation: 14
#20Dec 20, 2020, 02:32 AM
Fair enough. Monetary deflation happens when too much money was made to start with. Price deflation is different.
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