>Once again storing your wealth in an inflationary coin simply makes no sense when a deflationary one exists. If we can get high-scalability with BTC I agree that is good. 0.5s Instant Confirmation with easy-to-use Digital eWallets on smartphones (thinking of grocery checkout)
Technology without a doubt. The economy grew in spite of inflationary money, certainty not because of it.
-
-
1/ I believe that the switch to inflationary-money (controlled well enough to not have hyperinflation) is what allowed there to be massive investment in technology/businesses/new ideas to create the technology that led to a betterment of the above 3 properties.
-
I think the development of those Technologies would have been much slower (maybe not even exist yet) if we had a fixed-money supply I think it's easier to invest in game-changing ideas & tech (for an ROI of course) when u know ur Purchasing Power is going to decrease if u don't
-
But money expansion devalues existing holders of currency which I believe is unethical, and only works under a government monopoly on money. If money was chosen organically and voluntarily by the free market, it would very likely be a fixed-supply money, not an inflationary one.
-
>If money was chosen organically by the free market, it would very likely be a fixed-supply money, not an inflationary one. I agree for the time before BTC solved the double-spend problem. That's bc u would always have to trust politicians to not devalue your money 'too much'
-
Now that we can program our money (and solve the double-spend problem), I think people would be happy to have programmed inflation (probably tied to birth rates). Would never need to trust a politician, and they could still have easy access to loans/credit that they enjoy today.
-
I respectfully disagree. Why would anyone in their right mind choose an inflationary coin over a fixed supply coin? Fixed-supply is Sound Money. Picking an inflationary coin goes against everyone’s *individual* self-interests. Market would never choose it *naturally*.
-
That's a Great point. It would come down to scalability & ease-of-use. Scalability: Fiat money backed/not backed by Gold always made it faster to price & buy goods with. (compared to weighing gold on a scale) Ease-of-use: Fiat currencies are always easier to carry in our pocket.
-
So the 'Scalability' &' Ease-of-Use' Properties of Fiat over Gold were enough of a 'positive' to outweigh the negatives of 'trusting politicians to not devalue the fiat *too much*'. And that has worked.
- 10 more replies
New conversation -
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.
(or a pegged sidechain)