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December 05, 2013, 12:23:28 PM |
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The reason fiat has inflation built in is that the government wants to encourage it being spent. They want it being spent because they want economic activity they can tax. The standard orthodoxy among economists is that this is actually an inherent good in and of itself. Yes, it does work for something like USD, encouraging its use as an index currency and the US has been able to parlay that into worldwide economic dominance.
However, BTC doesn't "care" in the least whether you spend it. Nor, despite economists, is a commodity/currency that is deflationary inherently bad. In fact, Satoshi designed this feature in. Yet, economists and the public (ignorant in different ways) seem to act like it was some kind of accident from it being badly designed. It isn't a bug. It is a core feature.
Arguably, in a world where nothing but deflationary currencies existed, this would lead to a boom and bust cycle that would be destructive. However in a world economy where Bitcoin is merely one of many kinds of currency, it provides a safety valve, a hedge investment, a form of currency for people who prefer its features, and a competitive pressure against the worst forms of abusive use of fiat by governments.
Let a thousand flowers bloom.
(But not tulips. If I hear the word "tulip" one more goddamn time I am gonna cut a bitch.)
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