I actually think the more efficient markets get, the more they start to resemble barter economies. The idea that barter is the lowest evolution of an economy I think is just historically wrong, almost in all societies, even going back to Bronze age, there was credit based money.
My primary concern is that if, hypothetically the world adopts Bitcoin as their money, at equilibrium, BTC purchasing power would grow at 3-4% per year... wouldn’t that decrease risk-taking / investments and risk a deflationary spiral?
-
-
I think volatility will prevent that from happening, but yeah, if the world adopted a statically deflationary currency, it would probably lead to a contraction of credit supply. I think it would also lead to an immense social pressure to increase issuance though...
-
...and I think we all know where that would lead to.
-
Hint, it rhymes with Charred Pork. :D
-
Cant figure out the rhyme
-
Hard Fork :p
-
But unchangeably fixed-supply is what makes it a good SoV... Price would drop a lot if you start inflating!

-
I don't think it makes it a good SoV, it makes it an investment/speculative asset, which is where the volatility comes from. A store of value is optimally always worth the same purchasing power.
-
I agree with your view. But just to play devil’s advocate: Don’t you think Bitcoin has capacity to become a global SoV? A Digital Neo-Gold? Gold is 15% vol per year and has been a SoV for millenia
- 1 more reply
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.