Re:Do kwon sent $80M a month to secret wallets?
by birdyrooster on Friday June 10, 2022 @05:26AM
(#31691838)
As seen in the past, the production of gold could not keep up with the need for liquidity and was at least vastly less inflationary relative to modern currencies, which again isn't a useful property for the currency of a nation state.
In what world is gold deflationary? The supply of available gold generally increases. The difference is that the expansion of the supply of gold is less flexible and harder to control.
Gold is also vunerable to supply shocks. For those weak on history, I suggest learning about the effects on global currencies due to the european pillaging of the Americas for precious metals.
Also, nothing prevents cryptocurrencies from having a mint rate that makes them inflationary. You don't really see that much because all "currency-like" projects with cryptocurrencies are still fundementally about inflating a speculative bubble to get early adopters rich.