It will lead to a new equilibrium. The greater the cash balances and lower the prices the greater the temptation to spend, and to break the spiral.
b) Marginal utility of every extra unit of money decreases when a person holds more of them. Couple that with falling prices and you have the killer of deflationary spiral.
A nice theory, though. The deflationary spiral one. But just a theory. Never happened.
You have no concept of history or the problems associated with a gold standard do you?
b) Are saying the well-off never squander money on stupid things?
Is the last sentence some kind of "ad hominem"? Because, it would be a pity.
b) I really have no idea where you're trying to take b.
"Is the last sentence some kind of "ad hominem"? Because, it would be a pity."
An ad hominem would be if I said your arguments were invalid because of who you are, that's what it means. I was making an observation about your ignorance based on the content of your arguments, entirely different.
I think that's not applicable to bitcoin since it's as comfortable to pay with microbitcoins as with bitcoins.
"but then a deflationary spiral started in 1931."
Yes, there was a deflationary event. As there were many before, and the last one before in 1920-1921, when the wholesale prices fall by a whopping 40%. But a deflationary event does not make a deflationary spiral.
There were also a lot silly activism both from the part of the Hoover and Roosevelt. The later speaking, beside other things about outright nationalization, and driving thus the busyness investment into ground..
So a lot happened than which make the Great Depression Great but deflationary spiral is not THE explanation.
(And before you ask, I'm posting this using pen and paper with IP-over-carrier-pigeon.)
It doesn't have to stop all purchases to have a negative economic effect.