Re:Nvidia announces mining GPUs, cuts the hash rate of RTX-3...
by astrange on Thursday February 25, 2021 @05:47AM
(#26261655)
> The definition of inflation is that asset prices go up.
The definition of inflation is typically that consumer prices go up due to there being "more money". The only kind of asset that people consume is housing, and even then they don't really - housing as an asset (purchase price) can be disconnected from its consumption price (rent). Besides that, you can't eat stocks so you don't get poorer when the price goes up.
Assets can actually increase in price because of deflation. For instance, technology getting cheaper has made all the stockbrokers drop their transaction fees and add fractional shares, so now everyone can bid up the same stocks.
This fear is greatly exaggerated by people who have bought into the false idea that Bitcoin is the only way to escape inflation.
The definition of inflation is that asset prices go up. You can escape inflation by simply buying assets, or basically anything other than cash.
If someone truly believed massive inflation was coming, they would want to take out USD-denominated mortgages and buy houses. Inflation would increase the value of the houses and reduce the value of your loan repayments.
It's silly that so many people are afraid of the government devaluing their cash that they've decided the best way to escape it is to pile into an asset with an extremely lopsided distribution in favor of early adopters. The average person stands to gain more from recent stimulus than they stand to lose from inflation in their cash accounts. Doubly so if they invest their cash in stocks or assets, which doesn't even require Bitcoin.