Re:What the Crypto Crowd Doesn’t Understand About Economics
by smt88 on Tuesday June 22, 2021 @11:34AM
(#27592991)
The inflationary consensus is a practical issue and common sense.
If an asset is deflationary, I have an incentive to hold onto it as long as possible. Spending it is costly.
If an asset is inflationary, it's costly to hold it.
If everyone receives an inflationary asset by default for goods/services and everyone wants to trade it for something else, we have an extremely liquid asset that can be exchanged for other things -- currency.
If an asset is deflationary, I have an incentive to hold onto it as long as possible. Spending it is costly.
If an asset is inflationary, it's costly to hold it.
If everyone receives an inflationary asset by default for goods/services and everyone wants to trade it for something else, we have an extremely liquid asset that can be exchanged for other things -- currency.