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0 pointsafricanboy5y ago0 comments

> if world productivity grows by 3% per year, my salary of 1 bitcoin gets more purchasing power.

but you are going to pay more for the same goods and services

if your bitcoin is 3% more valuable, when you use it to buy milk it's going to cost you 3% more

the game is working only because today if bitcoins increase their value you can exchange them for more fiat money

in a bitcoin economy one bitcoin is worth exactly one bitcoin, forever, whatever that buys

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ballofrubber5y ago

In a non-inflationary monetary system cost of goods decreases every year, thats how productivity growth works.

You seem to have it backwards, this is where the Econo101 book from the parent comment might help ;) /s

Inflation drives down the purchasing power, hence why milk gets more expensive every year, even though we get much more efficient at producing it. Remove inflation and 1 bitcoin buys you a liter today and 1.03 litres next year.

africanboyOP5y ago

> In a non-inflationary monetary system cost of goods decreases every year

and so do salaries, they are a cost to someone ...

as long as your purchasing power stays the same salaries will go down as well.

it's simply natural.

you can't really believe that billions of people will get rich by sitting on the salary of a single year

BTW that liter of milk will generate 3% more profit to the seller. there is no incentive to lower the prices if hoarding is so rewarding

ballofrubber5y ago

Salaries are negotiable and the renegotiation lever is skewed towards the employee. e.g. "i accept the pay cut of 3%, but will need 2 days of vaction more" vs "please employer pay me 3% more to combat inflation"

You won't get more rich by sitting on your salary, but you will also not get more poor like you do today.

If the milk seller doesn't lower his prices a competitor will do that, as he is able to do that with the bigger margin the better productivity brought.

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ballofrubber5y ago

In a non-inflationary monetary system cost of goods decreases every year, thats how productivity growth works.

You seem to have it backwards, this is where the Econo101 book from the parent comment might help ;) /s

africanboyOP5y ago

> In a non-inflationary monetary system cost of goods decreases every year

and so do salaries, they are a cost to someone ...

as long as your purchasing power stays the same salaries will go down as well.

it's simply natural.

you can't really believe that billions of people will get rich by sitting on the salary of a single year

BTW that liter of milk will generate 3% more profit to the seller. there is no incentive to lower the prices if hoarding is so rewarding

ballofrubber5y ago

You won't get more rich by sitting on your salary, but you will also not get more poor like you do today.

If the milk seller doesn't lower his prices a competitor will do that, as he is able to do that with the bigger margin the better productivity brought.

1 more reply

j / k navigate · click thread line to collapse