15 Apr '13, 1am

"Hoarding" Causes Deflation, Not The Other Way Around: I keep seeing people making the argument that Bitcoin's...

I keep seeing people making the argument that Bitcoin’s limited supply leads to deflation, which leads to “hoarding,” which kills Bitcoin’s value as a currency. This argument gets things exactly backwards. To see why, we have to start with a thought experiment. Suppose there’s an economy in which everyone has $1000 in the bank. After a terrorist attack, the consumers all want to double their savings, and so they cut back on their spending. Unfortunately, it’s mathematically impossible for everyone to increase their cash holdings simultaneously by spending less. One person’s spending is another person’s income. So as everyone simultaneously reduces their spending in an effort to save more, they find their incomes are declining at exactly the same rate. In the frictionless world of economic textbooks, this problem can be solved with falling prices. Businesses should notice f...

Full article: http://www.forbes.com/sites/timothylee/2013/04/14/hoardin...

Tweets

lead the way...

lead the way...

deluxeduck.livejournal.com 19 Apr '13, 8am

frustrated flâneur | shameless sybarite | art junkie | intrepid collector | pariah extraordinaire

Fat, drunk and Matthews is no way to go through...

ace.mu.nu 16 Apr '13, 12am

Chris Matthews: I'm Not Going to Speculate, But This Is Obviously a Rightwing Plot Everyone's Confirming a Man's in the Ho...

How to Be a Marketing Leader: Make Everyone Around You Better

How to Be a Marketing Leader: Make Everyone Aro...

searchenginewatch.com 15 Apr '13, 9am

While I was scrambling to finish some last-minute handover items during my last day in the office before heading on vacati...

Home prices moving the right way: Tharman

forums.condosingapore.com 19 Apr '13, 12pm

http://www.straitstimes.com/premium/...arman-20130419 Home prices moving the right way: Tharman Government has no plans fo...

Confirmed: Hyperdeflation Is A Problem For Bitcoin

Confirmed: Hyperdeflation Is A Problem For Bitcoin

businessinsider.com 16 Apr '13, 7pm

We previously speculated there was a major danger in surging Bitcoin prices: it would eventually harm the Bitcoin economy ...

Bitcoin Doesn't Have a Deflation Problem

forbes.com 12 Apr '13, 12am

A number of smart people have made arguments like this one from Matt Yglesias: If over time more and more people want to u...

Why there won't be a "tsunami" this time around...

rockybru.com.my 17 Apr '13, 4am

Jubilant, euphoria, excitement, ecstatic, elated (I'm running out of adjective here, please help..) filled the air when Na...

Why Forex Magnates is Covering Bitcoin – Becaus...

forexmagnates.com 15 Apr '13, 6am

Readers have probably noticed that we have been putting more focus on covering bitcoins , and added a dedicated thread for...

Inflation moving the wrong way

forums.condosingapore.com 23 Apr '13, 6am

Inflation moving the wrong way 3.5% for March mainly due to lower COE BUT: healthcare education costs continued to rise st...

Bitcoin "Mining" Somehow Found a Way to Be Environmentally Destructive

Bitcoin "Mining" Somehow Found a Way to Be Envi...

gawker.com 14 Apr '13, 9pm

Max Rivlin-Nadler View Profile RSS Bitcoins, the currency of the future (the future dominated by the dickhead Winklevoss t...

While we wait for our party paparazzi to load, here's 25 things to do, see, hear, eat and buy in Singapore this week:

While we wait for our party paparazzi to load, ...

timeoutsingapore.com 15 Apr '13, 6am

Wine speakers Nicolas Bauget from Champagne Bauget-Jouette and Renaud Bancilhon from Champagne Ernest Rapeneau share tasti...

“The one thing you can’t take away from me is t...

runfastermommy.com 16 Apr '13, 12pm

When I'm upset, or hurt, I tend to write. It's therapeutic for me, to just let the emotions flow. But when I'm pissed off,...

Bitcoin Celebrated As Way To Avoid Taxes

huffingtonpost.com 16 Apr '13, 5pm

The issue (as I see it) is that Bit-coins have no real negotiable worth other than "Stated worth". It's not like Gold, whi...

Volkswagen Mk7 Golf R could have around 300 hp

Volkswagen Mk7 Golf R could have around 300 hp

paultan.org 15 Apr '13, 6am

The Volkswagen Mk7 Golf R could have around 300 hp at its disposal, according to a report published by Auto Express . A so...

CrunchWeek: Bitcoin Mania, Foursquare Gets A Ca...

techcrunch.com 13 Apr '13, 6pm

CrunchWeek: Bitcoin Mania, Foursquare Gets A Cash Infusion, And VCs Rally Around Google Glass Colleen Taylor View Staff Pa...