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Author Topic: Economic of Deflationary Spiral  (Read 12469 times)
FreeMoney
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April 30, 2011, 06:00:30 AM
 #101


Yes, that is because an 'investment' in the economy money is the same as an 'General Investment' in the entire economy.  Think of it as a weighted basket investment in every venture in the entire economy... That is what money is.
 

I was thinking this same thing today. In the Bitcoin future what to invest in when you have no special investing insight will be beyond obvious. Just hold the general equity unit: Bitcoin.

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May 04, 2011, 07:53:41 AM
 #102

Yes, that is because an 'investment' in the economy money is the same as an 'General Investment' in the entire economy.  Think of it as a weighted basket investment in every venture in the entire economy... That is what money is.

That statement is very interesting. But note that is only true for a fixed money supply and no hoarding.
If I were able to hoard 50% of the money supply for a long enough period of time, the other money owners would have a 50% return even with no growth.
When I release the money by buying goods and services, I will enjoy the same return at first, but less and less while inflation occurs due to this money release.

2 different forms of free-money: Freicoin (free of basic interest because it's perishable), Mutual credit (no interest because it's abundant)
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