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The article addresses one key aspect in fiat that is parallel to gold: inflation - gold being 1-2% (in par with population growth), fiat 2-4% - while one preser
by mgh2 5y ago
The article addresses one key aspect in fiat that is parallel to gold: inflation - gold being 1-2% (in par with population growth), fiat 2-4% - while one preserves value, the other expands it, by fueling production.
I have read a lot about crypto recently, and yet the community cannot answer this: How do you account for the global population growth (and consequently GDP growth) that is constantly in need for a relatively stable exchange medium for value of goods produced?
More people > more production > more money.
Money is a tool to fuel production. Controlled devaluation fuels growth, AS LONG as it is backed by actual production - counter this with popular examples quoted: Germany (WWII), Venezuela, Greece, Argentina, etc. dramatically devalued their currency WITHOUT an increase in production.
The problem with any limited supply is that it benefits and incentivizes hoarders and non-producers, having nonbeneficial effects for society as a whole.
Please provide information that help answer this question, I am still researching.
- razius 5y ago> dramatically devalued their currency WITHOUT an increase in production Which is the argument that FED is doing right now. See M1: https://fred.stlouisfed.org/series/M1SL https://fred.stlouisfed.org/series/M1SL and think of this, is the US that much more productive? > The problem with any limited supply is that it benefits and incentivizes hoarders and non-producers, having nonbeneficial effects for society as a whole. Hoarding of what? Don't you need money to buy gold / bitcoin?