The Problem
In today's global economy, two opposing forces are at play:
Deflation
1. In a free market, prices trend towards the marginal cost of production.
2. Technological advancements continually lower production costs.
3. This logically suggests a gradual decline in prices over time.
4. Thus, deflation emerges as a natural outcome within a free market.
Inflation
1. Our economy relies heavily on credit, leading to significant levels of debt.
2. Defaulting on this debt would cause systemic collapse.
3. Instead, Governments resort to devaluing their currencies through measures like money printing to reduce debt burdens.
4. However, this leads to inflationary pressures.
In Brief
In essence, technological progress implies falling prices, yet our economic system avoids this to avert collapse. Consequently, cost savings are usurped through inflation, leading to myriad societal issues. Moreover, as technology advances exponentially, inflationary pressures likewise escalate.
Bitcoin's fixed supply addresses this problem, allowing cost savings to flow to Bitcoin holders. As long as Bitcoin remains decentralised and secure, holding Bitcoin will ensure your wealth grows exponentially forever.
#bitcoin
zenseekerx / ZenSeekerX
npub1kzj…7gxh
2024-05-04 10:02:37
Author Public Key
npub1kzjf70fx5u8gg9wlhe6d4q8kx03gcn7v8ct0dalpaafcktkqq9mqgf7gxhPublished at
2024-05-04 10:02:37Event JSON
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"content": "The Problem\n\nIn today's global economy, two opposing forces are at play:\n\nDeflation\n\n1. In a free market, prices trend towards the marginal cost of production.\n2. Technological advancements continually lower production costs.\n3. This logically suggests a gradual decline in prices over time.\n4. Thus, deflation emerges as a natural outcome within a free market.\n\nInflation\n\n1. Our economy relies heavily on credit, leading to significant levels of debt.\n2. Defaulting on this debt would cause systemic collapse.\n3. Instead, Governments resort to devaluing their currencies through measures like money printing to reduce debt burdens.\n4. However, this leads to inflationary pressures.\n\nIn Brief\n\nIn essence, technological progress implies falling prices, yet our economic system avoids this to avert collapse. Consequently, cost savings are usurped through inflation, leading to myriad societal issues. Moreover, as technology advances exponentially, inflationary pressures likewise escalate.\n\nBitcoin's fixed supply addresses this problem, allowing cost savings to flow to Bitcoin holders. As long as Bitcoin remains decentralised and secure, holding Bitcoin will ensure your wealth grows exponentially forever.\n\n#bitcoin",
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