Nick Szabo  🔑

There is no "correct" amount of savings vs. investment. However: 1) People don't understand that savings and "hoarding" money also bring about indirect economic growth. 2) Fractional reserve banking incentivizes investment through inherently fraudulent expropriation.

The emergence of a Bitcoin Standard would reduce government intervention in the market decisions of individuals deciding between savings and investment. The government has skewed actors towards investment, and we'd expect an increase in savings.

For actors choosing to save, they would choose Bitcoin instead of fiat or gold, because the latter two are uncertain about future supply changes. Even without uncertainty, Bitcoin has a higher stock-to-flow ratio. It's simply a more attractive savings vehicle, ceteris paribus.