Quote:
Originally Posted by Jason14h
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
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forex trading though is predicated on constant bets on relatively tiny increases, those value fluctuations rarely register with the general population or affect their activity.
And yes Governments do constantly monitor the money supply to check deflation, they will print a ton of money to balance it out if it starts to occur, something that you cant do with a pegged currency, whether you peg it to gold or some arbitary digital rule.
Imagine if Canada used bitcoin right now instead of a centrally controlled dollar, there would be no covid relief, the Government literally wouldnt have any money to give out, the streets would be full of the recently evicted unemployed on soup kitchen lines, you know like 1929.