Reddit isn't just good for viral videos and hot takes on what is the best PokΓ©mon.. Which is clearly Blastoise.
Sometimes reddit provides you with a gem that's worthy of a slow head nod.
A question was asked about Bitcoin that I found very thoughtful:
If bitcoin were to consistently rise in value over time, why would anyone ever spend it? Isn't this a problem for Bitcoin-as-currency views?
I've declared my "HODL for life" belief many times over. I'm in the camp that believes Bitcoin will be more of a savings vehicle than a day to day currency.
However, I did come across a response that had an interesting perspective:
HeatSeekingPanther (love the name) replied:
You are touching on a concept known as Gresham's Law. It states that "bad money drives out good". For example, if there are two forms of money in circulation, which are accepted as having similar face value, the more valuable money will gradually disappear from circulation.
This is because people tend to hoard the good money (the one that holds value better) and spend the bad money now. I like to think of it as the bad money being net "sold" and the good money being net "bought". (the thing being net sold continues to go down in value)
The eventual conclusion here (history supports this) is that with enough time and enough devaluation no one will accept the bad money as payment and people holding the good money will be forced to use it to buy their goods and services.
A money that has matured to become dominant in a society can never increase forever in value against real goods and services because that would imply that holding the money is more economically valuable than say, eating, or heating your home. No rational economic actor actually desires money. They desire the things they think the money will buy them.
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