Had a nice little conversation with a VeniceAI agent this morning and then when we got onto the topic of exponentially improving technology and deflation he spit out this little nugget and kind of broke my brain-
But here's the brake, and it's real-
Deflation equals output growth minus velocity growth. And AI is the single largest velocity event in monetary history.
Machine-to-machine settlement at machine speed means you need far less money sitting around to support a given volume of transactions. If velocity rises as fast as output, the deflation rate collapses toward zero and the holder earns almost nothing — because real money balances equal Y/V, and if both grow together, balances are flat.
Someone smarter than me want to weigh in on this?
violinteo / Teo
npub1s8…a4ch3
2026-10-13 18:57:23 UTC
Author Public Key
npub1s850vk293prrwwq9gaggf6qxpjx98avsxt8yfm9779cptukw799s5a4ch3Seen on
wss://relay.primal.netPublished at
2026-10-13 18:57:23 UTCEvent JSON
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"content": "Had a nice little conversation with a VeniceAI agent this morning and then when we got onto the topic of exponentially improving technology and deflation he spit out this little nugget and kind of broke my brain-\n\nBut here's the brake, and it's real-\nDeflation equals output growth minus velocity growth. And AI is the single largest velocity event in monetary history.\n\nMachine-to-machine settlement at machine speed means you need far less money sitting around to support a given volume of transactions. If velocity rises as fast as output, the deflation rate collapses toward zero and the holder earns almost nothing — because real money balances equal Y/V, and if both grow together, balances are flat.\n\nSomeone smarter than me want to weigh in on this? \n\n",
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