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Bingo. Money is only a useful medium of exchange if it is stable, and deflationary currencies are inherently volatile.
by koheripbal 7y ago
Bingo. Money is only a useful medium of exchange if it is stable, and deflationary currencies are inherently volatile.
- DanTheManPR 7y agoDouble bingo. Money is only useful insofar as it has velocity. If speculators are just sitting on it, it's not facilitating economic activity.
- qubex 7y agoI’d never thought of it that way but I wholeheartedly agree.
- lawn 7y agoDon't delude yourself to thinking that the volatility of Bitcoin is due to it's constrained supply. It's because it's used for speculation almost exclusively, and not for it's intended purpose: buying stuff.
- deleted 7y ago[deleted]
- qubex 7y agoThe volatility of bitcoin has nothing to do with its eventual theoretical maximum (and therefore extremely long-term contraction, as the theoretical maximum will be subject to corruption, loss, and so forth). The volatility of bitcoin and other cryptocurrencies (or more accurately, crypto-assets) is due to their extremely shallow markets and unpredictable volumes.