Post
Topic
Board Economics
Re: Martin Armstrong Discussion
by
deisik
on 13/12/2016, 07:07:35 UTC
Market is still bigger than anyone one person.. so it will end up using the most efficient cash system it can find and implement into society.. the drive towards ideal money never ended... gold wasnt ideal because its too heavy and it meant todays rich can benefit at expense of tomorrow. Central bank targeting is more efficient and ideal over gold backed inflation... and cryptocurrency with some baked in inflation metric is even more ideal because or its public auditable properties and claims of work that cannot be forged... so sooner or later gold will be shiny toy your grandma loves but just not worth much

It may be more ideal toward a store of value property of money, but certainly not as a currency

It is implicitly assumed that Bitcoin will be appreciating in the future (due to supply of new bitcoins tapering off eventually), and that is good for a store of value. This property contributes to hoarding. On the other hand, hoarding is the opposite of spending, they are mutually exclusive. To be a good means of exchange, money should be circulated, but the optimum seems to be somewhere in the positive territory of inflation rate, since money depreciating at a slow and low rate discourages saving and contributes to spending (while higher inflation rates would obviously disrupt circulation)