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What is the difference between a currency and a commodity? If the rate of appreciation is perceived as high enough, and the exchange rate into goods and service
by llamataboot 10y ago
What is the difference between a currency and a commodity? If the rate of appreciation is perceived as high enough, and the exchange rate into goods and services is high enough, anyone will have a tendency to hoard a currency - why wouldn't you?
It would be simple to create an alt-coin that degrades in value over time, thus encouraging circulation and not hoarding (though how you would battle fake-circulation through shill transactions is up for debate), but no one wants to buy into such a thing.
I happen to think the conflation of money/debt/interest with the corresponding need for continual economic growth is one of the great tragedies of our age, but I'm not entirely sure how to get out of it.
- Dylan16807 10y ago> What is the difference between a currency and a commodity? Whether you want to spend it. > If the rate of appreciation is perceived as high enough, and the exchange rate into goods and services is high enough, anyone will have a tendency to hoard a currency - why wouldn't you? Of course it's reasonable to do in such a situation, but that doesn't make it good for the thing being hoarded. Ideally a currency would have minimal appreciation.