When you take money out of circulation, you reduce inflation.
Here's a "real world example:"
There's a house near me that's selling for $7,777,777 (get it? Lucky sevens?)
The cost of the house is obviously arbitrary, and it's listing has a bunch of references to bitcoin. The owners of the home are obviously trying to "leverage" crypto mania to find a buyer.
Now that a bunch of crypto "wealth" has been destroyed by falling prices, the owner of that house will need to re-assess whether $7,777,777 is a realistic price.
More than likely, it's not. And by lowering the price of the home they're selling, they're contributing to a reduction in real world inflation rates.
Also, yes, I know that inflation stats use a proxy for the cost of housing.
Here's a "real world example:"
There's a house near me that's selling for $7,777,777 (get it? Lucky sevens?)
The cost of the house is obviously arbitrary, and it's listing has a bunch of references to bitcoin. The owners of the home are obviously trying to "leverage" crypto mania to find a buyer.
Now that a bunch of crypto "wealth" has been destroyed by falling prices, the owner of that house will need to re-assess whether $7,777,777 is a realistic price.
More than likely, it's not. And by lowering the price of the home they're selling, they're contributing to a reduction in real world inflation rates.
Also, yes, I know that inflation stats use a proxy for the cost of housing.