The country is trending in cryptocurrency savings as residents look to find ways to protect sayings and face inflation. The risks and how you can protect against them.
The problem is that if I have bitcoin, I can’t fucking spending it as currency, now can I? I’ll hate myself tomorrow when it’s gone up 2x.
So if everyone has bitcoin, everyone HODLs, no currency changes hands and the economy just dies because nobody buys or sells anything.
The minor inflation in EUR or USD accomplishes the exact opposite: Money keeps changing hands. The rich, obviously, want to keep everything they have. But oh look, if you just hoard it, it keeps slowly losing value over time! Now these rich assholes (along with anyone else who has significant savings) have to invest their money if they want it to keep value or even appreciate in value - and when it’s invested, that means someone else can actually do something with the money.
The problem is that if I have bitcoin, I can’t fucking spending it as currency, now can I? I’ll hate myself tomorrow when it’s gone up 2x.
So if everyone has bitcoin, everyone HODLs, no currency changes hands and the economy just dies because nobody buys or sells anything.
The minor inflation in EUR or USD accomplishes the exact opposite: Money keeps changing hands. The rich, obviously, want to keep everything they have. But oh look, if you just hoard it, it keeps slowly losing value over time! Now these rich assholes (along with anyone else who has significant savings) have to invest their money if they want it to keep value or even appreciate in value - and when it’s invested, that means someone else can actually do something with the money.
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And who’s going to buy anything for this local currency if it starts appreciating? It’ll be the death of economy.
Lots of people spend currencies that go up in value. Believe it or not, people sometimes want stuff now instead of the possibility of stuff later.