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Saving more than spending has also been popular advice for fiat, at times. More for medium/long-term personal purposes at the expense of immediate macro purpose
by hunter2_ 3y ago
Saving more than spending has also been popular advice for fiat, at times. More for medium/long-term personal purposes at the expense of immediate macro purposes, but I think that applies to both systems.
- zirgs 3y agoCentral banks inflate their currencies on purpose to discourage hodling. Short term savings for emergencies are good. But by hodling fiat long term - you are just losing money. Cryptobros thought that they are smarter than central banks and didn't bother to implement proper monetary policy in the Bitcoin protocol to prevent its volatility.
- tome 3y ago> But by hodling fiat long term - you are just losing money. Real interest rates are typically positive, so no, you are not.
- hunter2_ 3y agoThe concept of hodling fiat could mean cash under the mattress or could mean an interest-bearing account. It's ambiguous.
- eric_cc 3y ago“Proper monetary policy” Want to elaborate? Bitcoins monetary policy is beautiful in its simplicity and predictability. In that sense, it stands in stark contrast to fiat.
- zirgs 3y agoA proper monetary policy would ensure price stability and predictable inflation. Bitcoin price has been all over the place, and its volatility makes it both a bad investment and a bad currency.
- eric_cc 3y agoBitcoin is priced in fiat which is itself volatile. Bitcoin must detach from fiat to gain true stability.