wachtwoord
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June 08, 2013, 02:43:46 AM
Last edit: June 08, 2013, 02:58:30 AM by wachtwoord


Dude, stop the Keynesian "deflationary currency leads to hoarding and hoarding is bad"-crap. People buy things, because they both want and need things. You cannot delay a purchase forever (post-mortem anyone?) so the fact that the underlying currency gains in value isn't going to stop economic traffic in the least *.

*Although in the beginning people might need to get used to this, but it will be temporary. People will need to get used that merely holding currency isn't voluntarily paying more taxes and that saving can actually be a good thing as opposed to the credit hungry society the west is these days. I don't have any debt, but I can assure you I'm a vast minority ....

Keynesians are like cockroaches Tongue

Let me explain why I feel hoarding is bad , and not because of this keynesian b*** which i don't give a crap about.

Worst case scenario
We have people accumulating bitcoins , people not using bitcoins , price skyrocketing because bitcoin is such a great idea, and there are fewer and fewer bitcoins (people are stashing them)  until , some moroon realizes

Why the f*** is a bitcoin so pricey when you can't do anything with it.

You know what happens next. And this won't be a bubble burst.It's going a total bearpocalypse.

To answer you I'll quote myself:


...  People buy things, because they both want and need things. You cannot delay a purchase forever (post-mortem anyone?) so the fact that the underlying currency gains in value isn't going to stop economic traffic in the least *.
...

Fiat serves no purpose as an investment vehicle, so all fiat you have you'll want to spend or invest in something that appreciates in value. With a non-inflationary (or even deflationary) currency, the currency can serve multiple purposes! Use for purchasing stuff and appreciation in purchasing power (or conservation in purchasing power depending on how you look at things). So, if you use Bitcoin exclusively you'll spend the money that you intend to spend and save the money that you intend to spend. It's just that it'll both be in the same "holding"/"currency".

The fact that a something can serve both purposes at once seems to confuse people.