Re:Kraken to end on-chain staking services for U.S. clients
by Jorge1o1 on Friday February 10, 2023 @05:25AM
(#34737876)
>Arguing that an inflationary money is actually a better store of value than a deflationary one is not possible from an economic standpoint
See Krugman’s legendary article about the problem with deflationary currencies, such as the one used by the Capitol Hill Babysitting Co-op.
Long story short, he claims that people will hoard their deflationary currency because they expect it to go up in value over time. But if a large percentage of economic actors are hoarding their currency, there will be less economic activity and less output, and paradoxically, the value of the currency will go down rather than up.
See Krugman’s legendary article about the problem with deflationary currencies, such as the one used by the Capitol Hill Babysitting Co-op.
Long story short, he claims that people will hoard their deflationary currency because they expect it to go up in value over time. But if a large percentage of economic actors are hoarding their currency, there will be less economic activity and less output, and paradoxically, the value of the currency will go down rather than up.