I'm sure people will - it's what always happens in a depression. Much of the research into it shows that this isn't so much because of the expectation of decreasing prices though, but largely because very simply if you think a depression/recession is coming and you might lose your job, you're going to want to save up some money just in case you actually lose your job.
I think that's simply logical thinking from people. I also think that, like during gold standard periods, you don't need to print money to fix this. People will still spend on necessities, and will still buy products they find attractive enough.
Largely agree, a challenge I do see is debt denominated in a cryptocurrency before that (presumably limited supply) crypto is at least somewhat close to having achieved maximum adoption. Ie I’d be terrified to have debt denominated in XNO (nano) - today my Ӿ300 debt might be a week’s worth of sales, in a year it might be a year’s worth of sales (due to the relative value increase of Ӿ). Mortgages / long term debt being impacted the most. This is obviously a concern that’s a ways off, but making that transition could prove difficult.
As far as spending goes I’d have to agree most of what the average person spends is either mandatory or desired enough that the change of a few points of inflation / deflation likely wouldn’t change spending habits.
This is all well and good, but when happens in a recession, or even a depression? People will start hoarding money.
I'm sure people will - it's what always happens in a depression. Much of the research into it shows that this isn't so much because of the expectation of decreasing prices though, but largely because very simply if you think a depression/recession is coming and you might lose your job, you're going to want to save up some money just in case you actually lose your job.
I think that's simply logical thinking from people. I also think that, like during gold standard periods, you don't need to print money to fix this. People will still spend on necessities, and will still buy products they find attractive enough.
Largely agree, a challenge I do see is debt denominated in a cryptocurrency before that (presumably limited supply) crypto is at least somewhat close to having achieved maximum adoption. Ie I’d be terrified to have debt denominated in XNO (nano) - today my Ӿ300 debt might be a week’s worth of sales, in a year it might be a year’s worth of sales (due to the relative value increase of Ӿ). Mortgages / long term debt being impacted the most. This is obviously a concern that’s a ways off, but making that transition could prove difficult.
As far as spending goes I’d have to agree most of what the average person spends is either mandatory or desired enough that the change of a few points of inflation / deflation likely wouldn’t change spending habits.
Edit: typo