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.
Distribution of wealth actually matters very, very much.
Politcally and socially, sure. Economicly or mathmaticly, not so much.
But thats not the point Im making, as it isnt about wealth; its about availability of credit. You (usually) dont get significantly more or less wealthy if you invest your credit money for instance in the stock market. But what you do achieve is making credit (ie money) available for businesses and generally thats a good thing for the economy. If everyone would hide their fiat under their pillow you would have a problem. Thats why I say the small disincentive inherent to inflationary credit money is actually a good property for the economy at large.
You're missing the point. Credit availability is a problem for
whom? I'm not trying to be a jerk, I'm trying to be a better economics professor than you apparently have been exposed to thus far. The classic method involves asking questions of the student, in order to lead them to a deeper understanding of the topic. Economics is more than mathmatics or statistics, it's
people, so both the who and why does matter.
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.
Sure;
but you dont have to save in fiat currency: buy gold; buy stock; buy bitcoins; buy land, start a business.
Yes, you do. To some limited degree and term, you must. We all must, as there is simply no way to avoid it. We can deliberately choose to limit that kind of exposure, but it's impossible to completely avoid it. And do you know who can least avoid it? The poor.
Credit money isnt meant to be the best possible preservation of wealth and that its not is therefore not in the least a problem. Its by design. The most important goal of a monetary system is not to preserve my wealth, it has to do enable our economy. And thats what credit money is much better suited for than bitcoins.
This reminds me of a quote...
"The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.
-― Friedrich von Hayek
Just because that was the idea, son, don't mean that is what actually happens. I question whether or not that was the true design, or simply propaganda to cover the scam, anyway.
Not till now, but that's exactly why Bitcoin exists, to present a real alternative.
Before bitcoin, you truly found nothing to invest your money in?
Before Bitcoin, there was nothing truly detatched from fiat currency systems to invest into. You betray your own though processes; as investing into regulated industries is investing into areas wherein the government has deliberately limited your choices, and then taxes you upon any successes that result despite them. Even investing in gold is taxed here in the US; both up front (sales tax) and on the back end (capital gains tax). The best way that I've found to invest without taxation is to use a Health Savings Account, but governments limit my choices there in other ways, and there is zero chance of fiscal privacy regarding one of those accounts. There is also zero chance of investing in anything not dollar denominated. It's acctually illegal to invest such funds into physical gold, for example. An ETF, sure; but not actual coins.
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.
You are completely misreading me. Im neither risk averse nor anti bitcoin; I just acknowledge what bitcoin is and what it isnt: A viable universal alternative to credit money; it is not: Something like ripple OTOH perhaps might be one day.
You say that it's not a viable alternative to credit based fiat. Okay, that's your opinion. What is it good for then? Again, why are you here? Are you trying to convince us, or yourself?
Think, young man, think.