I don't think the question "Why buy today what can be bought tomorrow cheaper?" fully explains the behavior of people in the face of increasing purchasing power; there seems to be something else going on. Any thoughts?
The problem is that the economic theories often cited by Bitcoin supporters presume certain fanciful behaviors.
For example, in economic-theorist world, a frictionless spherical perfectly-informed perfectly-rational actor does not buy a six-pack of beer. Instead, the actor makes decisions:
* I will buy one beer at this unit price. Will I buy two?
* I will buy two beers at this unit price. Will I buy three?
* I will buy three beers at this unit price. Will I buy four?
* I will buy four beers at this unit price. Will I buy five?
* I will buy five beers at this unit price. Will I buy six?
* I will buy six beers at this unit price. Will I buy seven?
* I will not buy seven beers at this unit price.
* Therefore I will buy six beers.
I've long assumed that all the people who actually make decisions in this way are locked up in the laboratories of mad economists, who observe their behaviors in the way a biologist might observe a terrarium.
The problem is that the economic theories often cited by Bitcoin supporters presume certain fanciful behaviors.
For example, in economic-theorist world, a frictionless spherical perfectly-informed perfectly-rational actor does not buy a six-pack of beer. Instead, the actor makes decisions:
* I will buy one beer at this unit price. Will I buy two?
* I will buy two beers at this unit price. Will I buy three?
* I will buy three beers at this unit price. Will I buy four?
* I will buy four beers at this unit price. Will I buy five?
* I will buy five beers at this unit price. Will I buy six?
* I will buy six beers at this unit price. Will I buy seven?
* I will not buy seven beers at this unit price.
* Therefore I will buy six beers.
I've long assumed that all the people who actually make decisions in this way are locked up in the laboratories of mad economists, who observe their behaviors in the way a biologist might observe a terrarium.