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So what about if the government decides to devalue the currency by printing more money? Hasn't that 'quantitive easing' eroded your stored value? Your balance m

by gnerd 13y ago

So what about if the government decides to devalue the currency by printing more money? Hasn't that 'quantitive easing' eroded your stored value? Your balance might be the same but the purchasing power and thus value isn't. Best bit is you won't know till after its done, way after. It might be a nice incentive for investing money to keep value ahead of inflation but to the man-on-the-street its a bit like robbery in some sense in that it deprives you of the full expected value of your funds.

sanskritabelt 13y ago
Well in actual fact, despite all the flack the feds get about monetary policy, core inflation is very very low. I remember the inflation of the late 70s/early 80s, and we are absolutely not seeing that now. Oil prices are obviously much higher than they were fifteen years ago, which has follow-on effects for transport and food and similar, and is why I specified 'core' inflation. How would a bitcoin economy deal with these sorts of spikes in commodity prices?