Earlier quoted context omitted.
The incentive to hoard, also often called the "deflationary spiral", is a theory proposed by neo-Keynesian economists, which doesn't appear to be as bad as they say. People have finite lifespan, and so, they want to use their hoards to better these finite lives, which leads them to spend. This preference, known as the "time preference", strikes a balance with the tendency to hoard. It is impossible to predict where t…
> Why do you buy cell phones or laptops today, knowing that future ones will be better or cheaper? Direct practical utility. > Why buy some food today, when you know your purchasing power will be greater next month? I don't eat, i starve, i die. > Why pay for housing when prices are falling, knowing your contract will be cheaper in five years? Now there you get into something interesting. Though the five years view i…
This dangerous idea has been used to justify all forms of crazy economic intervention since Keynes formalized it. The notion of a currency having to depreciate is a direct consequence of these policies, all based on a fallacy. No matter how counterproductive these policies are, they're still applied. Look to Japan and Switzerland as recent examples. Japan has massive stimulus, the Yen is dropping, are people spending more, no, they're saving for the future, knowing that their savings will be worth less, so they need more of them to get by - no spending on unnecessary items. Switzerland is paying negative interest rates on savings accounts, so people have to save more to offset that.
There are lots of things to dislike about Bitcoin, but its value increasing over time isn't one.