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Re:The political case for a blanket cryptocurrency ban by abakker on Wednesday March 31, 2021 @01:34PM (#26650283)
the Keynesian wisdom was that Inflation is good for borrowers and that deflation is good for lenders. Most governments are managing for borrowers since borrowers tend to be investing and it has been a long-held economic axiom that investment is good.

Deflation decreases the value of work you have already done.

Re:The political case for a blanket cryptocurrency ban by imtringued on Wednesday March 31, 2021 @07:42PM (#26654701)
>Deflation decreases the value of work you have already done.

Are you sure? Deflation increases the value of work you have already done and decreases the value of work you will do in the future.

Simple example: If I immediately convert my paycheck in BTC then I would have earned more BTC in 2013 than in 2021. My work in 2013 would be worth more than the work I did in 2021.

Re:The political case for a blanket cryptocurrency ban by seibelj on Wednesday March 31, 2021 @11:08PM (#26656209)
You have a misunderstanding of "value", "worth", "cost", "price", etc. In our inflationary environment, you would (ideally) be paid more for the same service in the future. This does not mean you are automatically worth more every second that passes - rather, the value of the money you are paid in declines. A loaf of bread is a loaf of bread, but the dollar declines in value continuously. You do not automatically think your skills are "worth more" with every second that passes in an inflationary world, just as your skills aren't "worth less" in a deflationary world by virtue of time passing.

In a deflationary environment, you would naturally be paid less over time, rather than paid more. Rather than a default of losing money, you are in default of gaining money. Prices adjust lower, and by saving money you are naturally gaining wealth vs. people with lower time preference who are spending money.

But in reality, all of this is psychology. There is an amount of wealth in the world, and this is the sum total of all owned assets. We can use any unit of measurement we like to value this. If today there is $1 million total in existence, and tomorrow we double the money supply and there is $2 million, we aren't all suddenly 2x richer. Just as when the central banks print money, people aren't richer - we are redistributing wealth away from people's savings and towards the receivers of money. Wealth is only truly created when useful and productive enterprises grow.