This is a completely invalid argument. You have no choice but to pay rent. If there is an asset that goes up in value, you will want to store your wealth in it. if you can directly pay with something that is also a good store of value, then for the individual that is simply the superior choice.
>Using cryptocurrency to transact every day items is directly contrary to the “HODL” culture around cryptocurrency that exists today. It works in society like an investment, not a currency.
That is due to other factors, not deflation. Not many people accept payment, people are forced to hold dollars, paid in dollars and there is friction when converting. Bad money gets spent first (Gresham's law). If you have dollars from your job anyway and your risk profile is to hold some % in crypto, then of course it doesnt make sense to spend your investment which would need to rebuy to rebalance your portfolio.
The deflation problem that you imagine doesn't exist. There are other more worthwhile arguments against deflation but you didn't use them
>This is a completely invalid argument. You have no choice but to pay rent.
I don't know what you think you are saying but you've just proven the argument. If you only make the minimum necessary transactions then your economy will be of minimum size.
>If there is an asset that goes up in value, you will want to store your wealth in it.
It's just a balance sheet. If the value of the asset goes up it just means the allocation of resources is biased to BTC earned in the past. You also cannot store wealth in Bitcoin. You have to give up real wealth to own Bitcoin.
>if you can directly pay with something that is also a good store of value, then for the individual that is simply the superior choice.
Sure, the individual wants his share of wealth to grow at the expense of everyone else. After all, who the hell would be against free shit that you don't have to work for?
>That is due to other factors, not deflation.
>Not many people accept payment, people are forced to hold dollars paid in dollars and there is friction when converting.
Literally nobody is forced to hold onto dollars. If anything central banks want people to stop holding dollars because of low inflation/the deflation problem.
> Bad money gets spent first (Gresham's law).
I don't know if you have noticed but bad money being spent first is snowwrestlers' argument. You've supported a supposedly completely invalid argument yourself...
>The deflation problem that you imagine doesn't exist. There are other more worthwhile arguments against deflation but you didn't use them
They boil down to the same thing. Deflation doesn't increase real wealth it only responds to real wealth increases by allocating the real wealth to people who held onto more currency. It is equivalent to an income tax that is then redistributed via a UBI that pays out proportional to how much BTC you own.
If you know that you will get more wealth extorting other people you will refuse to spend your Bitcoin because it increases your ability to extort people in the future.
I was replying to "Why would I use a unit of cryptocurrency to pay my rent today, if I think the real value of the cryptocurrency unit will buy even more rent next month?". To be honest I don't understand what you're saying at all, within that context
I do pay my rent with crypto, because I don't have any USD/EUR income and it is less friction for me. Why would I want to go through extra effort to get dollars? Due to my situation I see quite directly that whether individuals choose use it as a payment method has no direct relationship with deflation
>If you only make the minimum necessary transactions then your economy will be of minimum size.
This is completely unrelated to the decision making of individuals
>Using cryptocurrency to transact every day items is directly contrary to the “HODL” culture around cryptocurrency that exists today. It works in society like an investment, not a currency.
That is due to other factors, not deflation. Not many people accept payment, people are forced to hold dollars, paid in dollars and there is friction when converting. Bad money gets spent first (Gresham's law). If you have dollars from your job anyway and your risk profile is to hold some % in crypto, then of course it doesnt make sense to spend your investment which would need to rebuy to rebalance your portfolio.
The deflation problem that you imagine doesn't exist. There are other more worthwhile arguments against deflation but you didn't use them