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Re:Bitcoin rises by Evbn on Tuesday March 19, 2013 @04:26PM (#5403384)
Because money is a medium of exchange, and has no inherent value. Hoarding cash is equivalent to destroying production-- by then time you try to spend it, there won't be anything left to buy. Inflation encourages people to be active in the system, exchanging to produce real value, not staring a the charts of growth of imaginary wealth that means only as much as a video game high score board.
Re:Bitcoin rises by Minthos on Tuesday March 19, 2013 @05:46PM (#5403831)
That sounds awfully counter-intuitive. Before there'd be nothing left to buy, the prices of things to buy would go up (i.e. inflation), which would discourage further hoarding.
Re:Bitcoin rises by aminok on Wednesday March 20, 2013 @02:26AM (#5405921)
Hoarding cash does not destroy production, as the number of units of cash in circulation does not affect economic productivity.