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And flight from debased fiat. A lot of currencies are inflating due to governments and central banks editing the money database. They can't edit the decentraliz

And flight from debased fiat. A lot of currencies are inflating due to governments and central banks editing the money database. They can't edit the decentralized ledger and print more Bitcoin or lock you out. That aspect is increasingly appreciated.

zamalek 5y ago
Inflation provisions liquidity. You're not going to buy shit if everyone HODLs: if nobody is willing to use the coin, how are you expected to sell for the coin? Currency losing value over time discourages hoarding that currency and doing nothing with it. Deflationary things are fixed assets, not currency. I would be more inclined to get behind a cryptocurrency that correlates liquidity with value.
- dcolkitt 5y ago
  This is contradicted by the entire economic history of the 19th century, when the industrial economies all had robust growth/investment combined with long-term secular deflation. That's not to say there isn't an argument for inflationary currency. But that argument is centered around the ability to conduct counter-cyclical monetary policy to stabilize the business cycle. But it's silly to say that deflationary assets are literally impossible to serve as currency, because we have actual historical evidence of deflationary currencies.
- api 5y ago
  > I would be more inclined to get behind a cryptocurrency that correlates liquidity with value. That could possibly be built. It's software defined money so it can do anything that can be expressed as a pure function of its state. You could probably make a Keynesian cryptocurrency that dropped money from helicopters when velocity was low, but it would be hard to design it so it wasn't easy to game via wash trading.
cateye 5y ago
If you think governments are bad, wait until you see this: https://twitter.com/CryptoWhale/status/1487095816145801221?t=EJ6oopxlUSVQb3dQ_wikVg&s=19 https://twitter.com/CryptoWhale/status/1487095816145801221?t...
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astrange 5y ago
People like reasonable inflationary designs because it means they actually have money. If everyone ran on crypto they would prefer a reasonably inflationary coin over BTC, which will naturally get less useful as people lose parts of the supply when they forget their keys, or as the population using it grows. (Who says the money supply of USD wasn't too small pre-money printing?) Actually, if Austrian economics youtube videos were real and inflation was horrible, then switching to crypto would not make you safe - because your government can't control what currency citizens trade in anymore, it can't stop someone else from inventing a popular currency and then suddenly inflating it.

zamalek 5y ago

Inflation provisions liquidity. You're not going to buy shit if everyone HODLs: if nobody is willing to use the coin, how are you expected to sell for the coin? Currency losing value over time discourages hoarding that currency and doing nothing with it. Deflationary things are fixed assets, not currency. I would be more inclined to get behind a cryptocurrency that correlates liquidity with value.

dcolkitt 5y ago
This is contradicted by the entire economic history of the 19th century, when the industrial economies all had robust growth/investment combined with long-term secular deflation. That's not to say there isn't an argument for inflationary currency. But that argument is centered around the ability to conduct counter-cyclical monetary policy to stabilize the business cycle. But it's silly to say that deflationary assets are literally impossible to serve as currency, because we have actual historical evidence of deflationary currencies.
api 5y ago
> I would be more inclined to get behind a cryptocurrency that correlates liquidity with value. That could possibly be built. It's software defined money so it can do anything that can be expressed as a pure function of its state. You could probably make a Keynesian cryptocurrency that dropped money from helicopters when velocity was low, but it would be hard to design it so it wasn't easy to game via wash trading.

cateye 5y ago

If you think governments are bad, wait until you see this: https://twitter.com/CryptoWhale/status/1487095816145801221?t=EJ6oopxlUSVQb3dQ_wikVg&s=19 https://twitter.com/CryptoWhale/status/1487095816145801221?t...

deleted 5y ago
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astrange 5y ago

People like reasonable inflationary designs because it means they actually have money. If everyone ran on crypto they would prefer a reasonably inflationary coin over BTC, which will naturally get less useful as people lose parts of the supply when they forget their keys, or as the population using it grows. (Who says the money supply of USD wasn't too small pre-money printing?) Actually, if Austrian economics youtube videos were real and inflation was horrible, then switching to crypto would not make you safe - because your government can't control what currency citizens trade in anymore, it can't stop someone else from inventing a popular currency and then suddenly inflating it.