a) Time preference (I guess you have a phone, even if..)
b) Marginal utility of every extra unit of money decreases when a person holds more of them. Couple that with falling prices and you have the killer of deflationary spiral.
A nice theory, though. The deflationary spiral one. But just a theory. Never happened.
Well, I disagree, with the interpretation of events known as Great Depression as a deflationary spiral.
Yes, there was a deflationary event. As there were many before, and the last one before in 1920-1921, when the wholesale prices fall by a whopping 40%. But a deflationary event does not make a deflationary spiral.
There were also a lot silly activism both from the part of the Hoover and Roosevelt. The later speaking, beside other things about outright nationalization, and driving thus the busyness investment into ground..
So a lot happened than which make the Great Depression Great but deflationary spiral is not THE explanation.
a) No, it's not different at all. If money is worth more tomorrow than today, that exerts negative pressure on purchases, suppressing the retail economy. People will still buy things, just less of them. What's so hard to understand?
b) I really have no idea where you're trying to take b.
"Is the last sentence some kind of "ad hominem"? Because, it would be a pity."
An ad hominem would be if I said your arguments were invalid because of who you are, that's what it means. I was making an observation about your ignorance based on the content of your arguments, entirely different.
Subdivision of BTC is irrelevant to talk about deflation. Talking about this (as the BTC wiki does) is just handwaving and does nothing to address the economics.
I thought one of the problems with deflation was that people used to hoard cash and there was not enough money availale to facilitate normal daily trades. Such thing won't happen with bitcoin.
b) Marginal utility of every extra unit of money decreases when a person holds more of them. Couple that with falling prices and you have the killer of deflationary spiral.
A nice theory, though. The deflationary spiral one. But just a theory. Never happened.