No. There's a reason Central banks/Keynes like low inflation cause it chugs the economy along. Deflation and hyperinflation are self-reinforcing problems, which require intervention. Not 100% sold, but one cant be sure. Crypto might be pretty bad. What I do know is it's coming
Deflationary cryptocurrencies won’t be the only one, but we will let the market decide. We will see whether people want to store their wealth in infl or defl assets. I see a world with BTC at 10T+ Privacy Coin at 3T+ Stablecoins at 2T+ and a few others at high sub 1T
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You'd store wealth in deflationary and that'd be the problem. Noone will spend it. The rest of the USPs - agree wholeheartedly. There are some serious benefits. Not to mention programmability! Those predictions. Think it's possible too, since global broad money is near 95t.
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You won’t spend BTC before 15T. Afterwards you’d spend, because 1) not as much growth left so u won’t be like the Pizza guy, and 2) people will DEMAND to be paid in BTC for their work / services / products.
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Growth would come from deflation. Everything else will keep getting cheaper cause there is more stuff in the world and the same BTC. So if you want to buy a car today, it wouldn't make sense of it's like 5% off in 6months
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Actually cars depreciate on their own so not a great example. But you get the point
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In that world BTC would appreciate 2% per year, you’d still use it to buy stuff.
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Yeah, those rates seem okay to me too. Intuitively, feels like lmt or small supply is fine, and historically gold probably (who knows?) worked out okay. Lsing ctrl on intervention is a risk, but could have great rewards. If adoption happens we'll need to deal with it either way
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The big question is - do we need central banks at all?
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Yeah, and that's a tough one for sure. Economics has arguements on both sides, but we have a (somewhat) working product in CB lead currencies, which all countries adopted. Remains to be seen what'll happen if we can't use monetary tools anymore
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