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You're comparing want (saving) and utility (spending). They're contradictory. They have different purposes. A functioning money system needs to have: (1) A Sto
by dnprock 6y ago
You're comparing want (saving) and utility (spending). They're contradictory. They have different purposes. A functioning money system needs to have:
(1) A Store of Value
(2) A Medium of Exchange
(3) A Unit of Account.
Bitcoin is mostly a Store of Value. It doesn't have the other 2 functions. We can try to fit all 3 into Bitcoin. The Gold Standard failed to do it. The US Dollar system is failing. Bitcoin will likely fail to do it.
- choward 6y ago> The US Dollar system is failing. What makes you think that?
- dnprock 6y agoThe US Dollar is supposed to be a Medium of Exchange and a Unit of Account. It is also being used as a Store of Value for countries with unstable currencies. Demand for the dollar causes trade imbalance, wealth inequality, and political problems. I think the Fed is doing a fairly good job in managing the dollar. It has becoming more political as the problems are moving closer to the source.