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2025-06-11 03:01:23 UTC
in reply to

ancaprevolt on Nostr: I’ve always thought deflation was a good thing, but I was talking to the AI and it ...

I’ve always thought deflation was a good thing, but I was talking to the AI and it brought up deflationary spirals.

Basically people are less likely to spend as prices fall over time. So low demand -> low profit -> layoffs -> less discretionary income-> low demand -> repeat

So maybe like a 1.5% inflation rate like Monero would be good. It would also keep transaction fees low as mining becomes less profitable.