I don't think BTC could be the world's reserve currency because it is deflationary. It would only incentivize people to save and stifle economic development.
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I don't think BTC could be the world's reserve currency because it is deflationary. It would only incentivize people to save and stifle economic development.
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Yes it would kill the global economy. Why would anyone invest in anything when you could 4x your month in a couple years simply by hodling Bitcoin.
All commerce would basically stop.
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Its basically the truth. I am guessing people will cut back and only spend on essential stuff so art and entertainment might go to nothing.
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Exactly. If something is going to rapidly increase in value, people are going to hold it. To get it out of their hands, you are going to have to give deals for them to spend.
That means prices collapse which is deflaitonary.
Many online seem to think that is a good idea until they live under it. Massive deflation as bad (if not worse) than inflation.
Talk about employment disappearing, operate under a deflationary environment for a few years.
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