Stable does not mean unchanging. People don’t understand that modest inflation in a currency is actually a good thing because it’s a natural incentive to spend, and velocity of money is a critical aspect of economic growth and health. Moving off of the gold standard launched the world into a period of unprecedented growth.
Obviously too much of any good thing is bad, and this applies to inflation as well. But the idea that you’re supposed to hold fiat for long periods of time is absurd and I’m tired of Bitcoin maxis who don’t actually understand money or economics parroting that line.
You’re not supposed to hold fiat. You do something productive: you consume with it, you invest in productive assets, or your lend it (to someone who will do one of the two former actions).
Bitcoin doesn’t compete with fiat. It competes with every other investment asset.
>People don’t understand that modest inflation in a currency is actually a good thing because it’s a natural incentive to spend, and velocity of money is a critical aspect of economic growth and health.
I looked up hyperinflation in MMOs and honestly the hyperinflation is by design. The fundamental problem is that veterans should not prevent new players from earning money. If the supply was fixed then veterans would acquire the majority of the currency. By letting monsters and NPC vendors print money you are stealing from the rich players robin hood style. It's impossible to solve without just outright taking the money that NPCs printed from wealthy players.
I've seen other approaches that just try to limit the supply of ingame currency and tie it to some random cryptocurrency or just plain old dollars and that is such an overengineered solution that doesn't even address the robin hood problem, which isn't a bug, stealing wealth from old players is 100% intentional.
Obviously too much of any good thing is bad, and this applies to inflation as well. But the idea that you’re supposed to hold fiat for long periods of time is absurd and I’m tired of Bitcoin maxis who don’t actually understand money or economics parroting that line.
You’re not supposed to hold fiat. You do something productive: you consume with it, you invest in productive assets, or your lend it (to someone who will do one of the two former actions).
Bitcoin doesn’t compete with fiat. It competes with every other investment asset.