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Approximately none, because dollars are inflationary by design (of the Fed), not deflationary like bitcoin (again, by design of its creators).
by jbellis 15y ago
Approximately none, because dollars are inflationary by design (of the Fed), not deflationary like bitcoin (again, by design of its creators).
- tatsuke95 15y agoExactly. Inflation prevents (in fact promotes the opposite of) hoarding. Hoarding dollars would be just as irrational as spending Bitcoins. An example of something being hoarded today? Anything that is having its price run up. Gold, for instance.
- batterseapower 15y agoFor another perspective: USD are "hoarded" by investing them in US treasuries. This preserves their value against inflation, because (to a first approximation) when the Fed prints money it does so by buying those treasuries, thus raising their price in USD. So in the dollar economy, hoarding takes the form of purchasing USD so you can participate in seigniorage. In the bitcoin economy, hoarding takes the form of holding on to your balance. But they are both forms of hoarding, designed to protect value without actually making "useful" investments that affect the real world.