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Hoarding is productive because if you're incentivized to hoard (as with Bitcoin) that means you will only most likely invest in projects you truly want to inves

by snitko 12y ago

Hoarding is productive because if you're incentivized to hoard (as with Bitcoin) that means you will only most likely invest in projects you truly want to invest for some reasons: either because people really need the product you are going to produce and will pay money, making this whole enterprise profitable or because you always wanted to be an innovator and do something amazing. However, since you no longer have to spend simply because you fear inflation will eat your money, this means you're not going to invest in useless projects of digging holes or buying useless luxury things for yourself. Deflationary currency incentivizes healthier lifestyle free of consumerism. Spending is not good and isn't the point of currency. The point of currency is to allow people to BOTH do transactions and save. I guarantee you that if the US removed all regulations on currencies, Bitcoin would take over in a couple of years as a national currency, making it obvious that USD is forced upon us.

hnnewguy 12y ago
>that means you will only most likely invest in projects you truly want to invest for some reasons So, precisely how it works with cash. >The point of currency is to allow people to BOTH do transactions and save. I'm not sure you understand what "saving" is. Considering that you likely work in an industry that relies on putting other people's capital to work, you would think that you'd appreciate a monetary system that incentivises such activity. I do. >However, since you no longer have to spend simply because you fear inflation will eat your money I don't fear this. Whatsoever. Because I don't stuff my money in a mattress for decades. Since the Fed introduced the inflation mandate in the 70s, inflation has been low. I don't care if a candy bar is $1 now, instead of $0.10. I'm far wealthier and can purchase far more candy bars. The absolute value of a dollar is irrelevant to me. >I guarantee you that if the US removed all regulations on currencies, Bitcoin would take over in a couple of years as a national currency Utterly delusional. 99.9% of the population has no problem whatsoever with the USD, myself included. Outside of paying taxes, US citizens can use whatever they want in exchange. Are people stopping you from using Euros or blueberry scones right now? Please tell me the regulations preventing such activity. We have many big economic problems to solve. Money isn't one of them.

by snitko 12y ago

hnnewguy 12y ago

>that means you will only most likely invest in projects you truly want to invest for some reasons So, precisely how it works with cash. >The point of currency is to allow people to BOTH do transactions and save. I'm not sure you understand what "saving" is. Considering that you likely work in an industry that relies on putting other people's capital to work, you would think that you'd appreciate a monetary system that incentivises such activity. I do. >However, since you no longer have to spend simply because you fear inflation will eat your money I don't fear this. Whatsoever. Because I don't stuff my money in a mattress for decades. Since the Fed introduced the inflation mandate in the 70s, inflation has been low. I don't care if a candy bar is $1 now, instead of $0.10. I'm far wealthier and can purchase far more candy bars. The absolute value of a dollar is irrelevant to me. >I guarantee you that if the US removed all regulations on currencies, Bitcoin would take over in a couple of years as a national currency Utterly delusional. 99.9% of the population has no problem whatsoever with the USD, myself included. Outside of paying taxes, US citizens can use whatever they want in exchange. Are people stopping you from using Euros or blueberry scones right now? Please tell me the regulations preventing such activity. We have many big economic problems to solve. Money isn't one of them.