Quote from: Puppet on March 25, 2013, 07:23:30 PM

Quote from: MoonShadow on March 25, 2013, 07:12:14 PM

Better for whom? It's not better for everyone. The owner of the currency should be able to choose the best method of saving. If your method really is better, others will follow.

For society at large.

It's not better, nor worse, for society at large. That's actually impossible. The "market cap" of an economy is simply a reflection of the total wealth of that economy. It doesn't matter so much who happens to possess that wealth, from an economic perspective. Central bankers inflating a fiat currency is a hidden tax upon the entire currency userbase, as it transfers purchasing power from those who earn and save in a currency to those who create and have first access to that currency. Said another way, every person who earns a paycheck is taxed in order to support the central banking system itself. Since most central banks in our modern world are arms of governments, it's those governments that benefit from such inflationary policies at the expense of pretty much everyone else in the country. However, governments are part of sociey, as it's usually defined, so such transfers are akin to removing water from one end of a pool and pouring into the other end. Sure, you've moved some molecules around, but you have no hope of affecting the water level.

Furthermore, one would have to define "society" in the context of economics, otherwise you're just advocating a political perspective with broken math.

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And as the owner of the currency you are completely free to choose your method.

Not till now, but that's exactly why Bitcoin exists, to present a real alternative.

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BUt you seem to want the government to guarantee the return of your "investment" when you decide to keep it in fiat? Why?

Where did you get that idea? I'd just prefer that governments not make those choices for me, nor limit my choices. They limit my choices all the time.

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They arent promising you that, in fact they will pretty much guarantee you take a small haircut each and every year. Still, its your choice.

And it's your choice also, now that Bitcoin exists. I suggest that you choose to invest elsewhere. Bitcoin is, after all, a very risky investment for which you seem to have zero faith. Why are you here? Do you want us to convince you of your errors, or are you trying to convince us of ours? In the case of the former, all the benefit is your own; in the case of the latter, your task is futile.