Hot take: Deflation is not good for growth. We want people to use their Ether so that the system grows not to hold it tight till it becomes obsolete. We don't want to be the next buttcoin, do we?

Jan 14, 2022 · 6:43 AM UTC · Twitter Web App

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Replying to @Mudit__Gupta
Eth becoming the next buttcoin feels inevitable to me.
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I like the general direction ETH ecosystem has taken with Layer 2. I expect ETH to eventually become impractical to use for anything but rollups. The growth will then happen at layer 2 but ETH will have such a strong network effect by then that it being a buttcoin won't matter.
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Replying to @Mudit__Gupta
But how will the whales get even richer by doing nothing? Doesn't seem fair lol
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Replying to @Mudit__Gupta
I’ve always thought this too. Always been told that slight inflation is healthy, deflation is really unhealthy. I’m curious if any crypto economists believe deflationary eth would be “ultra sound” and the argument for it
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There's still inflation, right? ETH Inflation Rate was still 0.46% in Q4. (fell 64% from 1.13%)
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Replying to @Mudit__Gupta
We still inflating, why number not going up?
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price is quite random
Replying to @Mudit__Gupta
The rewards of holding through deflation is an incentive that partly drives growth, no?
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Yes, and no. It incentivizes the wrong growth. We don't have everyone to lock all of their ether and enjoy a ghost chain. That being said, number going up does bring in more attention, resources, and growth. We just gotta strike the right balance.
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Replying to @Mudit__Gupta
inflation makes us poor. deflation makes us poor.
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