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> more inflation than you've ever seen on a properly managed fiat money system While this may be true, a scarce money system does produce better result than po

> more inflation than you've ever seen on a properly managed fiat money system While this may be true, a scarce money system does produce better result than poorly managed fiat money systems. You won't see the kind of hyperinflation that we saw in Zimbabwe with the gold standard.

sethg 15y ago
A poorly managed money system is one symptom of a government that is poorly managed, period, and living under a poorly managed government is always going to suck. If armed thugs loyal to the ruling party come to kick you off your land, steal your valuables, and discourage you from voting for the opposition, you’re not going to be able to pay them off with Bitcoin. (ETA: ...or if you can, the ability to do so is not going to make that country a pleasant place to live.)
oelewapperke 15y ago
But the million dollar question is whether it produces better results than a well-managed fiat money system ? In a fixed-supply system a small number of powerful people will amass all money (as the value of cash tends toward infinite over time, the only correct action is to hoard any and all money you have). Or that's what the theory says, anyway. Is it true ? History would seem to indicate that it is, but there is certainly no consensus on this matter. In a fiat-money system with controlled inflation the value of money tends toward zero, forcing investors to do stuff with their money. All money will therefore be used for running the economy, very little money will be used for hoarding (which is exactly what you see today in America. The wealthy control very little money, and even the portion they do control is mostly invested in loans to profit-seeking companies). Of course, inflation de-facto puts money in government hands. The theory is (but is it true ?) : in a controlled-inflation system nearly all money is used for making people do things (which tends to result in absurd levels of bureaucracy on the negative side), in a scarcity system all money is hoarded, and nobody gets off their ass. I'm thinking I'd prefer a controlled inflation system. Now how do we restrict inflation to a fixed, predictable value ? Because bitcoin is not the answer for this.

sethg 15y ago

A poorly managed money system is one symptom of a government that is poorly managed, period, and living under a poorly managed government is always going to suck. If armed thugs loyal to the ruling party come to kick you off your land, steal your valuables, and discourage you from voting for the opposition, you’re not going to be able to pay them off with Bitcoin. (ETA: ...or if you can, the ability to do so is not going to make that country a pleasant place to live.)

oelewapperke 15y ago

But the million dollar question is whether it produces better results than a well-managed fiat money system ? In a fixed-supply system a small number of powerful people will amass all money (as the value of cash tends toward infinite over time, the only correct action is to hoard any and all money you have). Or that's what the theory says, anyway. Is it true ? History would seem to indicate that it is, but there is certainly no consensus on this matter. In a fiat-money system with controlled inflation the value of money tends toward zero, forcing investors to do stuff with their money. All money will therefore be used for running the economy, very little money will be used for hoarding (which is exactly what you see today in America. The wealthy control very little money, and even the portion they do control is mostly invested in loans to profit-seeking companies). Of course, inflation de-facto puts money in government hands. The theory is (but is it true ?) : in a controlled-inflation system nearly all money is used for making people do things (which tends to result in absurd levels of bureaucracy on the negative side), in a scarcity system all money is hoarded, and nobody gets off their ass. I'm thinking I'd prefer a controlled inflation system. Now how do we restrict inflation to a fixed, predictable value ? Because bitcoin is not the answer for this.