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Stable inflationary currencies also fail the everyman. If you're smart you protect wealth through investment and 'saving' back in to the fractional reserve bank
by nly 13y ago
Stable inflationary currencies also fail the everyman. If you're smart you protect wealth through investment and 'saving' back in to the fractional reserve banking system scheme. Reality check though... most people have very little savings and zero, or next to zero, investments... and why should they? With the exception of ensuring a good future quality of life with a pension (largely 'taken care of' by your employer) many people have no interest in such investment.
Velocity of money will certainly be lower under a deflationary currency in a highly speculative environment, but nothing gets around the fact that when I want a soda, or when I need to buy a house I'm going to do so, regardless of the 'price' of Bitcoin.
And long long term, why would I, in my day to day life, even care what the price of Bitcoin is against the Dollar any more than I care about the price of the Dollar against the Thai Baht?
Do people living in Eurozone countries still convert back to their pre-€ currencies to get a sense of value?
- rsynnott 13y ago> With the exception of ensuring a good future quality of life with a pension (largely 'taken care of' by your employer) many people have no interest in such investment. They may not know they do, but it's likely that their employer, say, is dependent on investment and/or cheap credit. They are also rather likely to have long-term debt (mortgages etc); that can get very ugly in a deflationary spiral, as wages drop but the debt remains.