Earlier quoted context omitted.
> Why getting richer and richer becomes something bad when we go crypto? Is that sarcasm? It discourages any type of economic activity. Why would someone invest into or try to start a business when you can become richer by just sitting on your money pile with no risk. Artificially constricting the supply of money in a non static economy is a bad idea. Like the gold standard just much worse.
Any type of economic activity in USD involves paying rent or huge surplus to those who hoarded real estate (which doesn’t go away any soon). I don’t see the big difference here. Doesn’t mean it’s a good thing, but let’s at least apply the arguments symmetrically. Why would someone invest into or try to start a business when you can become richer by just sitting on your _property_ pile with no risk. Yeah, I guess.
Well that implies that you are more or less economically illiterate. I’m not talking about property and even renting residential/commercial property (as relatively safe as it is) does provide an actual service.
Anyway.. a very basic example, imagine you have $1000000, you can:
- keep it under your bed and lose 2% every year
- invest it into real estate etc. and make e.g. 4% every year.
- invest into the stock market and make 6%.
Now with a deflationary currency like bitcoin (or gold back in the mid to late 1800s) you can just hoard it and conservatively make 2-3% every year* invest into safe bonds and gain another 3-4%. Business would need to grow at an extremely fast pace to be able to attract much capital in such an environment.
* of course it’s only hypothetical. You’d need the economy to grow and productivity to increase YoY for this. That would be unlikely in any economy that used Bitcoin as its primary currency.