Re:The Wealthy Are Hoarding $10B of Bitcoin in Bunkers
by baq on Wednesday May 09, 2018 @12:26PM
(#17031153)
> I don't agree with people talking about a deflationary spiral (has it ever happened?), but there is another issue.
these happened all the time before central banks were created; see the two-century CPI plot: http://www.businessinsider.com/chart-inflation-since-1775-20...
In a deflationary model, old money gets more and more valuable with time. In 50 years, it's possible that one Bitcoin will be worth 10M€.
What happens then when someone finds a stash of 100k BTC on their grandpa's attic? They can destabilise the whole economy.
With inflationary currencies it's never an issue - a money is either in circulation, or "evaporates". If you find your grand-grandfather's savings on the attic, they won't be worth too much (even if it's still a fortune). If you find your grand-grandfather's crypto-savings, you're a trillionaire, and a king of the world.