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> [crypto is] not immune to the general capital-breeds-capital effect. Is there a currency - even theoretical - where 'capital-breeds-capital' is _not_ a side-
by dlivingston 4y ago
> [crypto is] not immune to the general capital-breeds-capital effect.
Is there a currency - even theoretical - where 'capital-breeds-capital' is _not_ a side-effect?
- shadowgovt 4y agoFiat currencies can defend against that phenomenon via wealth redistribution: simply creating more currency and handing it to the poor.
- fwip 4y agoMost currencies don't have it baked it into the core workings of the currency. In crypto, possessing money generates money, without investing it or putting the money "to work." This would be like if the dollar bills in your wallet periodically grew another dollar.