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Creative Title (lemmy.world)
submitted 1 year ago by to c/memes@lemmy.world
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Not really a meme meme, but i felt like i had to :s

The "1984 Calendar" meme template where the woman says "Payment processors are banning NSFW content on all platforms by threatening to stop processing payments."
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[–] 1 point 1 year ago* (last edited 1 year ago) (12 children)

You know bitcoiners will still be mining for over 100 more years.

Technically "mining" does not end because there will always need to be more blocks if there are new transactions. Minting new coins that get awarded to miners is what ends in a bit over 100 years. And then what happens? My point stands.

Another lazy myth regurgitated. You were obviously an exam crammer, not a thinker.

It's fact. You can't even refute it besides desperate name calling and just stating the opposite. 😂 Sorry that reality isn't fun for you.

When your system entirely hinges on people not considering risk... 🤣 denying that risk is a factor in risk-reward calculus because "PeOpLe WaNt MoRe" is totally convincing, big winner of an argument. They want more, and they can get more... by doing absolutely nothing... so that's exactly what they'll do to get the more they want. They could get more by robbing a bank or selling their kidney!!!! Oh wait, that's right, risk... 🤦

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  • [–] 1 point 1 year ago (11 children)

    desperate name calling

    I'm not calling you names. I'm saying you have demonstrated no ability to think independently. I don't think you are a LLM but likely you are copy pasting from one.

    You can't even refute it

    I did. You seem unable to process the responses I write or even the links you post.

    When your system entirely hinges on people not considering risk.

    I wrote the opposite. That under deflation people will still make risky investments because it will make them money. Yet again you demonstrate an inability to comprehend.

    They want more, and they can get more... by doing absolutely nothing...

    1. Money under the mattress earns deflation

    2. Money invested earns deflation + interest.

    The second is more than the first.

    I think we've reached your limits in this topic.

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  • [–] 1 point 1 year ago* (last edited 1 year ago) (10 children)

    Ah yes, accusing one of using an LLM, a sure sign of winning the argument 🤣

    1. Money invested earns deflation + interest.

    That's incorrect, money LOANED earns deflation + interest, not money invested. Money invested loses out on the deflation.

    You have 1BTC. You exchange the 1BTC for 1 unit of an investment. As BTC deflates, it's buying power increases. When you go to sell your investment, you find that 1BTC still buys 1 unit of the investment, even though your investment grew in value during the same period of time. You could have done nothing to get the same result, without risking the volatile investment losing value instead of gaining. The higher the return needed to outpace deflation, the riskier the investment needs to be. Deflation worked against the investment, not with it.

    Inflationary currency motivates investment and consumption. When your money is going to lose some value anyway, you might as well take a risk and invest it for a potential reward. You might as well make that large purchase today, because your money will buy a little less tomorrow. This is healthy for the economy.

    You are correct that deflation adds on top of interest, which makes loans more expensive. This stifles an economy by decreasing demand/consumption and the flow of money through the economy. When loans are more expensive to pay back, people are discouraged from taking a business loan and starting a new business or taking out a loan and investing it or using it to make a large purchase.

    I think we've reached your limits in this topic.

    Lol I'm literally giving you a free education. You should be paying me for this. It's something that you're still responding after your argument has been torn to shreds with my every reply, without fail. The name calling and LLM accusations creep in as you start to realize you're wrong and desperately cling to denial. The cracks are already showing lol. Getting tired of trying to spin inconsistencies? Like I said, it's effortless to just be correct.

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  • [–] 1 point 1 year ago (9 children)

    In order to loan out money and charge interest, someone needs to agree to the terms on the other side of the exchange.

    Agreed.

    • When there is inflation a higher amount of interest is accepted by the lender to compensate this loss.

    • When there is deflation a lower amount of interest is accepted by the lender.

    The economy doesn't grind to a halt. People don't horde cash. Consumption still occurs. Services are still performed.

    Even if deflation means the value of money increases every year, people will still lend out their money because they would like to have more than money than if they did nothing.

    find that 1BTC still buys 1 unit of the investment instrument, even though your investment grew in value during the same period of time.

    So you made a bad investment in something that wasn't needed. Invest more wisely. This is basic economics.

    It's impressive that you're still responding after your argument has been torn to shreds

    It's good practice and helps hone my ideas.

    Deflation is the answer to the infinite growth required by capitalism. It should be embraced, not avoided.

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  • [–] 1 point 1 year ago* (last edited 1 year ago) (8 children)

    The economy doesn't grind to a halt. People don't horde cash. Consumption still occurs. Services are still performed.

    Again, facts and history disagree with you. See the great depression and other economic downturns.

    people will still lend out their money because they would like to have more than money than if they did nothing

    Again, risk exists and is half of the risk-reward calculation. When your system entirely hinges on risk not existing... big sign that you're wrong lol.

    So you made a bad investment in something that wasn't needed. Invest more wisely. This is basic economics.

    It's a demonstration of the relationship between deflation and investment. And yes, it is basic economics. 😂

    Invest more wisely

    Invest with less risk? More risk? Or you're saying "just predict the future correctly" 🤔 I wonder if you'd learn something about this in an econ 101 class.

    Deflation is the answer to the infinite growth required by capitalism. It should be embraced, not avoided.

    Gee, you're literally dead wrong, and the experts agree with me. It's inflation, not deflation, that is required for growth. There's a reason the government targets a rate of 2% inflation per year.

    Inflationary currency motivates investment and consumption. When your money is going to lose some value anyway, you might as well take a risk and invest it for a potential reward. You might as well make that large purchase today, because your money will buy a little less tomorrow. This is healthy for the economy.

    You are correct that deflation adds on top of interest, which makes loans more expensive. This stifles an economy by decreasing demand/consumption and the flow of money through the economy. When loans are more expensive to pay back, people are discouraged from taking a business loan and starting a new business or taking out a loan and investing it or using it to make a large purchase. This is bad for the economy.

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  • [–] 1 point 1 year ago (7 children)

    Again, facts and history disagree with you. See the great depression and other economic downturns.

    Read the links you posted. Debt default was the crisis. Deflation was a symptom.

    When your system entirely hinges on risk not existing... big sign that you're wrong lol.

    I have no idea why you claim my "system" has nothing risk. Reread this thread to correct your misunderstanding.

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  • [–] 1 point 1 year ago* (last edited 1 year ago) (6 children)

    I have no idea why you claim my "system" has nothing risk. Reread this thread to correct your misunderstanding.

    You need a higher return on investment in order to outpace deflation and make investing worth your while. Do assets with a higher potential return have more risk or do they have less risk?

    Also I'm just going to keep posting these 2 paragraphs every comment until you actually address them lol:

    Inflationary currency motivates investment and consumption. When your money is going to lose some value anyway, you might as well take a risk and invest it for a potential reward. You might as well make that large purchase today, because your money will buy a little less tomorrow. This is healthy for the economy.

    You are correct that deflation adds on top of interest, which makes loans more expensive. This stifles an economy by decreasing demand/consumption and the flow of money through the economy. When loans are more expensive to pay back, people are discouraged from taking a business loan and starting a new business or taking out a loan and investing it or using it to make a large purchase. This is bad for the economy.

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  • [–] 1 point 1 year ago (5 children)

    You need a higher return on investment in order to outpace deflation

    No, in an inflationary environment you demand a higher return on investment in order to outpace inflation. Look at Argentina if you are confused.

    Deflation is the opposite of inflation. Keep up.

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  • [–] 1 point 1 year ago* (last edited 1 year ago) (4 children)

    Nope, you literally have it backwards. No wonder you've got this all wrong.

    If your money increases in value at a 5% rate (deflating), and a share of stock also increases in value at a 5% rate, then there's no reason to exchange your money for the stock. The stock needs to increase in value at a higher rate in order to make it worthwhile to give up the currency and possess the stock instead.

    Inflation is opposite. For example, if your money is decreasing in value at a 2% rate (inflating), the stock doesn't even need to increase in value for it to be better. It would be worthwhile to exchange the money for the stock even if it was just holding a stable constant value.

    Which is riskier, a stock that has a potential return of +5% or a stock that holds a stable value?

    Rate of return needs to beat/outpace deflation. Technically you're half right, because rate of return ALSO needs to beat inflation, it's just easier to do because inflation is negative, so even investments that don't grow and just hold a stable value beat inflation. Which is why inflation encourages investment and stimulates and grows the economy.

    As promised:

    Inflationary currency motivates investment and consumption. When your money is going to lose some value anyway, you might as well take a risk and invest it for a potential reward. You might as well make that large purchase today, because your money will buy a little less tomorrow. This is healthy for the economy.

    You are correct that deflation adds on top of interest, which makes loans more expensive. This stifles an economy by decreasing demand/consumption and the flow of money through the economy. When loans are more expensive to pay back, people are discouraged from taking a business loan and starting a new business or taking out a loan and investing it or using it to make a large purchase. This is bad for the economy.

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  • [–] 1 point 1 year ago (3 children)

    When your money is going to gain some value, you might as well take a risk and invest it for an even greater potential reward.

    People always want more money.

    Deflation does encourage delayed consumption of none staples and big ticket items. This is a feature not a bug.

    You are correct that deflation adds on top of interest, which makes loans more expensive.

    No. There is less interest charged on loans in a deflationary environment. Loans are cheaper. Remember the Argentinian counterexample ? Inflation high, interest rates high.

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  • [–] 1 point 1 year ago* (last edited 1 year ago) (2 children)

    If you're an individual investor, given the choice between the 2 scenarios, would you rather exist in a world with 2% deflation, where you have to make more than a 2% return on investment in order for it to have been worthwhile, or a world with 2% inflation, where you don't even need to correctly pick a growing investment, and even an investment that just holds a stable value is worthwhile.

    The choice is obvious, of course the individual would rather have the deflation scenario, because then they don't even need to invest or take any risk to grow their wealth. They can literally just sit around and do nothing, and their wealth grows for free without any risk.

    But this is naive and childish to think that an environment where you just get free wealth for no reason by doing nothing is healthy for an economy as a whole.

    Argentina had very high inflation, and I agree that's bad. The amount of inflation is key. What dictates the amount of inflation that is healthy? Hint: you'll have to scroll all the way to the beginning of this lesson in order to know. (jk I'll just tell you here, it relates to the growth rate of the economy). Argentina's inflation was out of sync with its economic growth.

    Technically, deflation isn't always theoretically bad and inflation isn't always theoretically good, but we live in a reality of moderate economic growth, so therefore moderate inflation is required to maintain it.

    And now we've circled back to the start and my position has remained entirely self-consistent, while yours has been easy to poke full of holes and point out the inconsistencies.

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  • [–] 1 point 1 year ago (1 child)

    If you're an individual investor, given the choice between the 2 scenarios, would you rather exist in a world with 2% deflation, where you have to make more than a 2% return on investment in order for it to have been worthwhile, or a world with 2% inflation, where you don't even need to correctly pick a growing investment, and even an investment that just holds a stable value is worthwhile.

    Deflation world. Invest $100 in a 2% risk free bond for a year. End up with $102 nominal ($104 real)

    Inflation world. Invest $100 in a 2% risk free bond for a year. End up with $102 nominal ($100 real)

    As an investor, the deflation world looks better to me.

    But this is naive and childish to think that an environment where you just get free wealth for no reason by doing nothing is healthy for an economy as a whole.

    You are literally describing the current world of investment. You have to go full communist to live in your "healthy" world.

    I suspect this is not at all what you meant to write, but it's hilarious that came out like this.

    we live in a reality of moderate economic growth, so therefore moderate inflation is required to maintain it.

    This is not true. But you may be referring to the money supply rather than price inflation so I'll let it pass.

    Technically, deflation isn't always theoretically bad and inflation isn't always theoretically good.

    Agreed. We could leave the discussion here and part amicably.

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  • [–] 1 point 1 year ago

    You are literally describing the current world of investment. You have to go full communist to live in your "healthy" world.

    The current world of investment involves returns without risk? 😂

    Given you're demonstrated lack of understanding of even the most basic fundamentals of economics, I can already tell you can't actually correctly describe communism. Seems like at this point you're just typing words that you think sound smart. There wasn't really any coming back from when you mixed up loans and investments, and got deflation and inflation entirely backwards lol.

    This is not true.

    But it is true, and expert economists agree with me. Sorry! You're wrong again.

    you may be referring to the money supply rather than price inflation

    Duh. I can't believe you're only getting this at this point in the conversation, but at least you're starting to figure it out?

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