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I am a believer now: It solves inflation problem, so government will soon be smaller.

• api 7y ago
  It doesn't solve the problems that led to the embrace of inflationary currencies at all. These are among others price inelasticity and the very powerful psychological "number going up is good" factor. Try explaining to an employee that their paycheck is smaller because currency has appreciated in value, or to a bank that the principal of a loan should be written down for the same reason. "But number go down bad!" Inflation hides these things. It's a hack around these problems.
  • aglavine 7y ago
    Am employee would have her paycheck in bitcoins. Same quantity every paycheck. Inflation is an emission problem and Bitcoin solves it.
    • sobani 7y ago
      > Same quantity every paycheck Not with deflation. As the value of Bitcoin rises (in terms of food, cars and vacations), the number on your paycheck will go down. It's already happening these days. Besides housing and healthcare, inflation is practically zero. Wages are staying flat as well and people are low-key freaking out, even though they can buy more food, cars and vacations than ever.