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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?

• 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.