3 ms·
+200% APY is an excellent store of value.
by not-satoshe 8y ago
+200% APY is an excellent store of value.
- the_gastropod 8y agoDo you think 200% annual growth is sustainable? Do you think that would make for a useful currency? Why do you think economists consider low (but positive) inflation to be desirable for currencies? Do you think such growth, mixed in with sporadic 85+% drops (aka: high volatility) is a good attribute for a currency?
- not-satoshe 8y agoNo, 200% APY in waves is expected as it becomes the reserve currency. Then it grows in value at a rate equal to the growth in productivity, closer to 0%. States think positive inflation is good, because it's a hidden tax that they profit from. I think 0% inflation is better for all participants. Yes, I think growth in waves is a great start for a money. Same thing happened with salt, gold, and other commodity monies.
- imtringued 8y agoThat's not how a store of value is supposed to behave. It's supposed to be stable, it shouldn't go up or go down faster than inflation/deflation.