I imagine someone saying that exact thing in 1933 when we went off the Gold Standard. Threat of violence was in effect then (turn in your gold). I am assuming threat of violence will be in effect when the L2 inflating-coin is backed by the BTC in the Central Bank's cold wallet
Quite the opposite, I believe the economy will thrive and economic growth will be unprecedented. Check out Austrian Economics thinkers like Hayek, Hulsmann, Rothbard. Also “The Bitcoin Standard” by Saifedean Ammous. I believe a deflationary spiral is a myth.
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That's great. We have a lot of different information in our Brains. I'm glad that you are telling me what you believe is the Truth, out loud. I'm the biggest fan of anyone that does that. Do you believe credit/mortgages will be easier to get with a deflationary currency system?
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No, I believe the interest rate will be higher. The current fractional reserve system which allows both central and commercial banks to literally create money from thin air makes the cost of capital artificially cheap (interest rate artificially low).
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(or a pegged sidechain)