4 ms·

That's really not how any of these things work. Bitcoin is completely separate from monetary policy, changes in interest rates are a useful tool and inflation i

by st1x7 6y ago

That's really not how any of these things work. Bitcoin is completely separate from monetary policy, changes in interest rates are a useful tool and inflation isn't necessarily bad. It's cool to be bullish on Bitcoin but this kind of reasoning shows a serious lack of understanding.

fasteddie31003 6y ago
So if you were given the choice of having two currencies. One with inflation and one without inflation. You would pick the one with inflation?
- bdcravens 6y ago
  Note the talk of Bitcoin's being deflationary refers to the technology, not the exchange rate.
- st1x7 6y ago
  > if you were given the choice of having two currencies If having = "to personally own with the hopes that the price goes up", then you pick a currency with limited supply. If having = "to have it be the currency on which your entire economy runs", you should pick a currency which doesn't have a limited supply. Dollars were in limited supply too, and they aren't anymore for a very good reason. Here's Ray Dalio trying to summarize some of the relevant economic principles in a video - https://www.youtube.com/watch?v=PHe0bXAIuk0 https://www.youtube.com/watch?v=PHe0bXAIuk0
  - nonidentified 6y ago
    To be fair, the question was "with inflation" or "without inflation" (inflation rate of zero). A currency with a limited supply results in deflation as the economy grows. Deflation gives an advantage to savers, the same way inflation gives an advantage to debtors. A currency with an unlimited supply which is supplied at the same pace as economic growth results in zero inflation. And that's nice because then the government isn't giving anybody an artificial advantage. Zero inflation means a level playing field.
    - st1x7 6y ago
      > To be fair, the question was "with inflation" or "without inflation" (inflation rate of zero). As you're pointing out, currencies don't have built-in inflation or deflation, that's why it didn't make sense to answer the exact question that the parent comment was asking.
- imtringued 6y ago
  I would pick a stable currency with a predictable 2% CPI inflation rate. Why? Because I don't want people to sit on their money and do nothing with it. Remember all these people that regretted spending their Bitcoin? With a deflationary currency every payment you do with your currency is regrettable. You will always think that if you had waited 50 years longer your kids would have become trillionaires.

by st1x7 6y ago

fasteddie31003 6y ago

So if you were given the choice of having two currencies. One with inflation and one without inflation. You would pick the one with inflation?

bdcravens 6y ago
Note the talk of Bitcoin's being deflationary refers to the technology, not the exchange rate.
st1x7 6y ago
> if you were given the choice of having two currencies If having = "to personally own with the hopes that the price goes up", then you pick a currency with limited supply. If having = "to have it be the currency on which your entire economy runs", you should pick a currency which doesn't have a limited supply. Dollars were in limited supply too, and they aren't anymore for a very good reason. Here's Ray Dalio trying to summarize some of the relevant economic principles in a video - https://www.youtube.com/watch?v=PHe0bXAIuk0 https://www.youtube.com/watch?v=PHe0bXAIuk0
- nonidentified 6y ago
  To be fair, the question was "with inflation" or "without inflation" (inflation rate of zero). A currency with a limited supply results in deflation as the economy grows. Deflation gives an advantage to savers, the same way inflation gives an advantage to debtors. A currency with an unlimited supply which is supplied at the same pace as economic growth results in zero inflation. And that's nice because then the government isn't giving anybody an artificial advantage. Zero inflation means a level playing field.
  - st1x7 6y ago
    > To be fair, the question was "with inflation" or "without inflation" (inflation rate of zero). As you're pointing out, currencies don't have built-in inflation or deflation, that's why it didn't make sense to answer the exact question that the parent comment was asking.
imtringued 6y ago
I would pick a stable currency with a predictable 2% CPI inflation rate. Why? Because I don't want people to sit on their money and do nothing with it. Remember all these people that regretted spending their Bitcoin? With a deflationary currency every payment you do with your currency is regrettable. You will always think that if you had waited 50 years longer your kids would have become trillionaires.