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ai is deflationary. very soon
probably within the next 5-6 yrs, the money supply to debt ratio vs business productivity will completely flip meaning productivity output will grow far faster than the expansion of money or debt. in that environment bitcoin absorbs productivity surplus and can be the best vehicle to store the excess value created.
Replies (7)
If tech deflation reduces the debt ratio, why has the debt ratio gone up in the past half century even though we’ve had staggering tech deflation? IMO if the rate of tech deflation increases, the rate of money creation will simply be increased to absorb it. The only thing new this time around is bitcoin. The tech deflation of AI is a difference of degree, not of kind.
tech deflation exists but it never reached escape velocity. pc hardware, software and bandwith got cheaper but none of it fundamentally rewired the entire economy’s labor structure. governments could outprint the deflation because productivity gains were always linear, not exponential. with ai prrhaps for the first time, productivity could compound faster than money creation.
I disagree that prior tech deflation was linear rather than exponential. Regardless, I appreciate your respectful disagreement with me. I’ve been generally disappointed with the rudeness I often get on Nostr for voicing my honest thoughts. Your response is refreshing, thank you!
Felt on discourse. Try not to let the negativity mess with your mindset. I failed miserably at this in the beginning. Hugs 🫂
I don't see how there is deflation in the creation of energy. AI requires energy. That's where the inflation will be
