As a cryptocurrency skeptic, I like some of Diehl's posts however he seems more sure that the whole thing will collapse than I am. I think it could survive long

As a cryptocurrency skeptic, I like some of Diehl's posts however he seems more sure that the whole thing will collapse than I am. I think it could survive long term as a kind of digital gold, a investment having poor returns used in niche financial use cases. I like this article because it emphasizes arguments about the dangers of deflationary coins going into widespread use (a point I made here: https://benoitessiambre.com/specter.html https://benoitessiambre.com/specter.html). I'd like to add some minor clarifications that might help understand some of the mechanics of these dangers better: > Money exists to exchange for goods and services in an economy. It is created to mediate the exchange of goods so that we have a common unit of account we can trade instead of bartering goods directly. Money needs to have a reliable and stable value compared to a domestic basket of common goods and services, in order to achieve that the supply of the money needs to be controlled by a monetary authority which can expand or contract the supply according to market fluctuations. >A dynamic money supply is a fundamental necessity for a modern economy. A small amount of inflation discourages hoarding and incentivizes investment into productive enterprises which grow the economy and produce prosperity. Conversely a static money supply is inflexible in times of crisis because it does not allow intervention. Economies do not stabilize themselves and require active intervention to curb recessions. What I want to add is that in some broader context, economies do stabilize themselves. Without a standardized government currency, if everyone was relying on barter or volatile coins (resulting in a super inefficient economy), things would usually automatically stabilize. If you want a stable currency, a useful thing to have that helps generate a ton of prosperity, that's when you have to put in place mechanisms that prevents the currency from creating market gridlock and amplifying crises. It's not that markets don't adjust themselves. It's that the existence of a deflationary government stabilized currency can prevent these adjustments. It can prevent them at an economy wide scale, causing untold human suffering through massive amounts of unemployment and destitution. The only solution we have to this (without getting rid of all stable currencies) is to make sure stable currencies are inflationary, that they lose value over time. As I mentioned, this is further explained here: https://benoitessiambre.com/specter.html https://benoitessiambre.com/specter.html and here: https://bessiambre.medium.com/the-world-deserves-a-pay-raise-302f25efd82a https://bessiambre.medium.com/the-world-deserves-a-pay-raise...