Stephan Livera

But then also zero upside potential (or basically zero)

Mostly correct. But the reason we hold money is because of future uncertainty. In a sound money scenario, holders of money would receive a slight 'growth deflation' benefit to holding money anyway - i.e. real cost of goods/services falls over time

Not sure I understand: the implied return then comes because (due to deflation) they can buy more stuff?

Yes, under a sound money standard, we should anticipate our money has a slight appreciation in real purchasing power Contrast that with now where holding fiat gives you a slight loss every year

sounds good - bookmarked :)

Maybe I'm not exactly sure what "downside risk" is but isn't missed gains a risk? Stocks will outperform money in a sound money economy because its money being put to productive use. Unless the aggregate loans are not paid back -- but if that is the case, we have larger problems.

Or in other words: In a sound money economy, you're going to want to buy index funds rather than just hodl sound money over the long term.

Bitcoinpasada, yes people will still invest in stocks and bonds in a bitcoin standard world. But it'd be less than now, because right now people are induced to do it - see the concept of 'chasing for yield' in a low interest rate env.

Agree less than now. We all know incentives are all skewed now. Maybe I misread, but it seemed your tweet was saying it's necessarily safer to hold sound money over invest it. We probably have to have a discussion about "risk" but I'm sure you agree we can't all just hodl forever

I think it'd be typical to have a portion of money (think "6 month emergency fund" from personal finance) as savings in BTC. Maybe people would put the rest into stocks/bonds to generate return. But crucially, even for those stocks/bonds the *unit of account* would be BTC