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That doesn't make any sense.

My amazon stock that I hold is going up in value, and is therefore "deflationary".

But it would be silly to say that I would never have a reason to sell those stocks.

I sell things, whether they are dollars or stock or crypto, because I want to buy something.



if you had 1 amazon share (worth $3286 right now), and $3286 in USD cash, and you wish to buy a $3286 computer, would you rather sell the share to obtain the cash, or transact using your existing USD?


I would have no preference.

It's the same thing.

The only difference maybe, is regarding friction. IE, maybe it is a bit more difficult to immediately sell the Amazon stock at a store.

But transaction friction is different than the deflation argument.




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