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So your choices are to maintain cash resertves in USD and take a guaranteed 2% inflation loss on the chin, or keep it in Bitcoin with unpredictable, but upward

by ericb 13y ago

So your choices are to maintain cash resertves in USD and take a guaranteed 2% inflation loss on the chin, or keep it in Bitcoin with unpredictable, but upward trending movement (as coins are removed from the pool with loss, death, etc.). I'm not sure that decision is so clear-cut.

djur 13y ago
Most people don't keep significant cash reserves, and that's a good thing. Dollars that people sit on are lazy dollars. At the very least, you can sink them in treasury bonds and the US government will put them to use -- but that debt is still denominated in dollars. At best, Bitcoin will end up as yet another option for investment. The deflationary trend and lack of legal tender status make it a total nonstarter as a currency.