Re:The Evolving Economics of Bitcoin, Gold and Fiat Currencies
by Retric on Wednesday November 01, 2017 @11:04AM
(#15601773)
Generally you can only pay taxes in a specific currency. Deflationary currency's lower debt risks which is a really nice feature when paying taxes, so considering taxes such a large expense deflationary currency's become far more appealing than you might think.
You also reduce risks by paying taxes in the same currency you conduct business in. So, while having large savings in deflationary currency is not a great idea, for the average person deflationary currency's are surprisingly appealing.
PS: Remember, many things like socks are valued in USD, but are not actually USD. Total USD supply is actually fairly low per person limiting average losses from inflation.
You also reduce risks by paying taxes in the same currency you conduct business in. So, while having large savings in deflationary currency is not a great idea, for the average person deflationary currency's are surprisingly appealing.
PS: Remember, many things like socks are valued in USD, but are not actually USD. Total USD supply is actually fairly low per person limiting average losses from inflation.