You are completely out of your depth, you have no idea what you're talking about, and it is not worth any effort to explain to you how a currency increasing in value by 10,000% in 5 years would cripple the economy.
Understanding why that would be disastrous to the point of irrevocably destroying a nation and leaving millions in abject poverty should be table stakes when you have the bravado to shrug off the fear mongering economists who study this stuff for a living.
Bitcoin exists and hasn't left millions in abject poverty yet.
Maybe you are the one who is clueless?
Are there even any examples of deflation ruining things, apart from Krugman's babysitting exchange? I don't think we should hinge the faith of nations on that one story, which may as well have many other explanations besides the deflation theory.
You don't even know if BTC would increase by 10000% in 5 years, if the nation would run on it.
Also new currencies have been created a lot of times in the past, technically their value would also have been increasing by 10000% over night.
Economists have lots of different opinions, you can not simply appeal to "economists say x". There are economists advocating socialism and economists advocating capitalism, for example. There are even economists advocating Bitcoin.
> Are there even any examples of deflation ruining things, apart from Krugman's babysitting exchange? I don't think we should hinge the faith of nations on that one story, which may as well have many other explanations besides the deflation theory.
Ever heard of The Great Depression???? Go read up on it and tell me if deflation made things better or worse.
> Bitcoin exists and hasn't left millions in abject poverty yet.
Bitcoin is not the official currency of a country! The closest cases we have to that are failing economies where BTC is used as a life raft and its taken * 10 million percent * inflation to finally make BTC an attractive alternative!
>You don't even know if BTC would increase by 10000% in 5 years, if the nation would run on it.
The only way it wouldn't have is if it was highly regulated... sounds like a great match for BTC right?
Like you realize we ran this experiment before right? Do you know what the gold standard was? And why we moved away from it? Hint: Go look up deflation and it's role in the Great Depression again.
Leaving the gold standard gave the government tools like interest rates that didn't have to compete with a commodity. Let alone a commodity increasing in value 10,000% in 5 years
> Economists have lots of different opinions, you can not simply appeal to "economists say x".
This is like stabbing your thigh with an icepick then saying "Doctors have a lot of different opinions, you can not simply appeal to "doctors say x" when someone points out that doctors would not like people to stab their thighs with icepicks.
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Your comment as a whole just tells me this is not even worth the effort I've put in to get to this point. I'm not even trying to be rude, you don't have the basics to even make conversing about this productive for either of us, so let's end it here.
I know about the Great Depression. Economists are discussing the causes to this day. And why it ended is also up to debate. Yes, they left the gold standard and all that, but there also was WW II and war economics. Politicians love Keynes theories because they can employ them to rationalize government spending and money printing.
It seems quite ridiculous to claim the Great Depression was caused by Deflation. It might as well have been the other way round.
I have a Billion Reichsmark at home. Was the collapse of Nazi Germany caused by Inflation? I rather doubt it. An egg cost 100000 Reichsmark in the end because there were few eggs to go around. In the Great Depression, presumably labor was cheap because there were more workers than demand for work.
As for the gold standard, most economists agree that we don't know how the experiment will end yet. What if the central banks keep interest rates low forever - nobody knows how that game will end. And they can not easily raise rates again now without bankrupting a lot of people.
In any case it seems humans have existed for thousands of years without central banks setting interest rates.
"This is like stabbing your thigh with an icepick then saying "Doctors have a lot of different opinions, you can not simply appeal to "doctors say x" when someone points out that doctors would not like people to stab their thighs with icepicks."
What an idiotic comparison.
"you don't have the basics to even make conversing about this productive for either of us, so let's end it here."
Yeah you know nothing about reasoning. But you are entitled to your beliefs and cherry picked "facts", of course. Let's hope you won't get responsibility for any nations money supply any time soon.
Understanding why that would be disastrous to the point of irrevocably destroying a nation and leaving millions in abject poverty should be table stakes when you have the bravado to shrug off the fear mongering economists who study this stuff for a living.