3 ms·
Interesting graph. Of course it's saying a lot more about fiat currency than about bitcoin. The graph would look about the same with almost any commodity, stock
by candiodari 9y ago
Interesting graph. Of course it's saying a lot more about fiat currency than about bitcoin. The graph would look about the same with almost any commodity, stock, real estate, ... and so on and so forth. It would look the same (exponential shape) for any state, and crucially, it would look the same even if you went back centuries or even millenia.
The only real conclusion to draw from this is that governments have always spent more than they claim to spend, and they've always made up the difference by cheating with your money. The ancient Faraos did this, the Roman Senate and Emperors, the Athenean democracy did it, the Communists (Russians and Chinese) did it, and modern democracies do it. They've all been doing it this way, and for multiple millenia.
TLDR: Don't store wealth in fiat currency (or gold currency). Almost anything else performs better. This should not be news to anyone, but surprisingly few people seem to have realized this.
- deleted 9y ago[deleted]
- cmac2992 9y agoCheating, also known as deficit spending.
- tim333 9y agoIt's more than spending more than they claim to spend. Governments could arrange for the value of their fiat currency to be stable or go up a bit but people borrow lots of it to buy houses and if the value goes up they have a job paying and the economy tanks. It's much easier to print some more and let it depreciate a bit.
- SaltySolomon 9y agoWell, yeah, that is kinda the point of inflation, to stop people from storing their value in money and instead use it and invest as to not loose value. If we had permanent deflation nobody would invest because the most reliable way to not loose value is to simply keep money and not invest it.
- empthought 9y ago"your" money... Show me the coin used for paying the tax.” They brought him a denarius, and he asked them, “Whose image is this? And whose inscription?” -- Matt 22:19-20
- jcranmer 9y ago"Render therefore unto Cæsar the things which are Cæsar's" -- Matt 22:21 That story is all about Jesus telling people "religious law doesn't get you out of paying taxes."
- empthought 9y agoCorrect, and neither does the quasi-religious belief that currency somehow has significance in the theoretical absence of a state.
- deleted 9y ago[deleted]