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2% inflation over 30 years destroys over half the purchasing power of the saved money. So no, moderate inflation doesn't encourage saving. It encourages the unb
by jkepler 6y ago
2% inflation over 30 years destroys over half the purchasing power of the saved money. So no, moderate inflation doesn't encourage saving. It encourages the unbridled consumerism that has created environmental catastrophe.
Bitcoin, as a deflationary asset, encourages lower time preference, which encourages saving and real investing (generating real world value rather than paper gains), resulting in less consumerism and better stewarding of resources.
- Jtsummers 6y agoI said it doesn't fully discourage it. I did not say that it encourages saving. Read my post. BTC does not encourage real investing, only hoarding. The hoarded BTC is not used in any productive investment or way because no one will loan it when it gains much more value than most businesses can produce merely by existing. When it can increase in apparent value by 100% in just a few weeks, there is no reason to invest your BTC because no business (or very few, and none sustainably) will have similar returns.