Bitcoin will cause deflation ?
Everyone seems to buy bitcoin, few sell... Which is better central banking or bitcoin?
Philosophical question here(I'm a long term holder of bitcoin but still ponder on these).
If the U.S. or another country pegged its dollar to Bitcoin, the economy would likely face massive >problems because Bitcoin has a fixed supply. As the economy grows, money wouldn’t grow with it, causing prices to fall (deflation). That sounds good at first, but it makes people hoard money instead of spending or investing, and it makes debts harder to pay back. The government and Federal Reserve would also lose tools like lowering interest rates or creating more money to fight recessions. Overall, it would make the economy rigid and unstable—similar to the old gold standard, but even stricter—slowing growth and making crises worse. Bitcoin would ultimately ruin our modern economy, through deflation. Something worse than inflation.
Any thoughts?
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