Quote:
Originally Posted by afc wimbledon
The problem with this is it is inherently deflationary, if the value of your money increases like an investment people dont spend it, they put off purchases as long as possible, this in turn forces the shops to reduce prices to move stock, so now you have two reasons to put off buying things, the money you have will become worth more where as the prices will drop, a rising valued currency and reducing prices in the shops stops the economy in its tracks like nothing else can, far worse than rampant inflation frankly everyone puts off buying everything, it creates stagflation, it's a huge reason the Breton Woods Gold standard was dropped, a currency that cannot be deflated is going to kill the economy in the end
|
You know you can buy any asset with traditional currency and create the exact same scenario ��
This argument only would work if people’s only option for cash was to spend on disposable goods and services or hold as cash
There is also literally an entire industry around currency trading that does exactly this - moving their funds into currencies they thing will appreciate