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What law of nature causes the BC to become more secure? We moved off the gold standard because it was too volatile, and we needed a way to stop rampant deflati
by jakewins 15y ago
What law of nature causes the BC to become more secure?
We moved off the gold standard because it was too volatile, and we needed a way to stop rampant deflation and/or inflation (thus central banks expanding and contracting the money supply). That was the gold standard, where at least the underlying value was of worth outside of it's use as currency. In the BC universe, there is no system of regulating money supply, the underlying "value" is fictional, and AFAIK, thus there is no way to stop the deflation we're seeing already.
I've also argued BC's inability to handle inflation, no separation between M0/M1 money leads to infinite lending and thus infinite inflation.
Withoug a way to keep both of these under control, I really don't see how this system could end up stabilizing in a way that would be useful.
Or am I missing something?