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RE: Hive Inflation Refresher

in LeoFinance5 months ago

I'm sure you probably don't subscribe to traditional economic models. But, I think I remember reading somewhere that the magic number for inflation is around 2% or so. This would be the goldilocks zone to create velocity of money, and thus generate economic strength in a system.

I often wonder if we could speed up the process, lower the inflation before the scheduled time. Now, I realize to you and I, that would be "bad", because we've been here grinding for a while, and thus if we keep it up, we are likely to grow a lot faster now. But, in theory, it would help Hive's price solidify a lot more.

The fact that our inflation is still so high just means anyone who joins today is still quite early.

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2% is the inflation rate that central banks say is good.

That does not apply to crypto at all.

The 2% inflation on a central bank is the amount of theft they can get away with without crashing the economy and ruining the party for everyone. Inflation on Hive is not theft or debt, it is new money owned by the entities that issue/receive it. This is a great discussion to have though and probably worth a separate post at some point.