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As much as I hate inflation...there is more to it than just printing money. Because money slowely loses value over time, it incentives investment over hoarding
by vinyl7 15d ago
As much as I hate inflation...there is more to it than just printing money. Because money slowely loses value over time, it incentives investment over hoarding. Bitcoin is a perfect example if this because there is a fixed number of bitcoins. People invest and hold onto bitcoin itself rather than spending it, causing the "value" of a bitcoin to increase. It makes for a poor currency because everyone who bought a pizza for several bitcoins a few years ago is now kicking themselves because they essentially paid tens of thousands of dollars for a pizza...so who would want to spend their bitcoins on something today when it could be worth twice as much in a few months?