Holding (the longer the better) is what makes currency accrue value. Spending doesn't make it accrue value, if anything, too much spending hurts value accrual.
how do you explain gold? By 1880, it was was mildly deflationary and yet it was a SoV, an MoE, a UoA, a global monetary standard and stable.
-
-
Deflationary in what sense?
-
"The point is that by not building in an inflation, of say 2% per annum in the global supply of Bitcoin, you almost doom it as a currency, because people will start hoarding it, knowing that it’s going to be worth more next year than it is this yr" - @ 51mhttps://asiasociety.org/hong-kong/should-people-invest-bitcoin …
-
"A hard supply cap or built-in deflation is not an inherent strength for a would-be money. A money’s strength is in its ability to meet society’s needs."https://www.economist.com/blogs/freeexchange/2014/04/money …
-
are you really quoting the notoriously Keynesian "the economist"?

-
absent governments to continuously print more, a free market would never converge around an inflationary coin. fixed supply would be the schelling point. picking an inflationary one is irrational.https://www.youtube.com/watch?v=WL9BHDEf0dI …
-
It’s impossible to make such a strong statement. We really don’t know. The market may converge around a mildly inflationary currency if it’s a more widespread MOE. Nothing exists in a vacuum except for your theories.
-
are u gonna pick a form of money whose supply increases 1% per year or 20% per year in supply? exact same logic with 0% and 2%. why would you voluntarily dilute your own wealth? its like burning money
-
Just picking select quotes highlighting the limitations of a deflationary currency, especially one for payments. I love Bitcoin! Don't think it will be ever used for payments. I do think a p2p, censorship resistant currency can be both a SoV and MoE with ~2% annual inflation.
- 8 more replies
New conversation -
-
-
Q: What countries in 1880? 1/ Gold circulated as a currency in many countries before the introduction of paper money. 2/ Once paper money was introduced, currencies maintained an explicit peg to gold (the paper being exchangeable for gold on demand) 3/ Then, Nixon happened.
-
Any major European country during La Belle Epoque. Can you explain how gold, despite being mildly deflationary, functioned as a SoV, MoE, UoA and was stable? :)
End of conversation
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.