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22 sats \ 1 reply \ @SpaceHodler 13 Jul 2023 \ on: Opinion: Why BTC can't become the reserve currency bitcoin
Saifedean explains it well in The Fiat Standard.
In the 1980s a hard drive cost orders of magnitude more per MB of storage than it does now. People knew prices would only drop, yet they bought hard drives, because they needed them.
The GDP would drop, but GDP is a poor metric, because it measures money spent, not value added to the economy. Read up on the broken window fallacy, e.g. https://www.economicshelp.org/blog/150529/concepts/the-broken-window-fallacy/
Yes, but deflationary currencies are affected most by large commodities. Inelastic goods will not be affected, but houses, cars and other large assets' demand will plummet.
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