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It’s a deflationary currency. No one is incentivized to spend it.
by popcalc 3y ago
It’s a deflationary currency. No one is incentivized to spend it.
- amjnsx 3y agoIf the value of the reserve money is $2b one year and it deflates to $3b the next, does that mean you can print more fiat every year? Sounds like an attractive proposition to me
- rglover 3y agoIf you got the money with zero energy expenditure, you don't care what the current fiat market value is. It's like finding a free lunch sack of cash on a park bench. You could argue that there's an opportunity cost to letting the money stay parked, but because governments ultimately dictate the value of their own currency, that point is moot.
- Matticus_Rex 3y agoDeflation doesn't mean there's no incentive to spend. It means there's a slight relative reduction in the incentive to spend. You can argue that it's still bad, but it's a very different thing.