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What if cryptocurrencies do not have the inflation problem?
by temp8964 6y ago
What if cryptocurrencies do not have the inflation problem?
- JumpCrisscross 6y ago> What if cryptocurrencies do not have the inflation problem? Then it is rational to hold, not spend, them. Deflationary currencies don’t function. (They can be stores of value.)
- ivalm 6y agoBut inflation isn’t a problem, it’s a benefit. We want people to spend or invest (in production) their money; economy works best when money is actively circulated, not hoarded. The problem with a totally fixed money supply is that as productivity grows new investments are disincentivizes, as a fixed currently holder get the benefits of aggregate productivity increases (through deflation) without risking his money in investing in companies.