I feel like we've had this conversation before but...
nothing you're describing requires a fixed number of monetary units.
theres no compelling reason to have a fixed number except "that's what Bitc...
True a flexible system of credit doesn’t require a fixed monetary base layer, but I was just answering your question.
And so far, I haven’t really seen a convincing case for why inflation the money supply is necessary. If you have some please share. But from another perspective, it’s essentially saying eroding of purchasing power at a certain pre-approved rate is acceptable. I’ll say this, the only compelling case I’ve heard is that without an inflating money supply, investment would reduce and hoarding happens. However in my opinion, that doesn’t stand up to common sense. A credit system and interest rates naturally ebb and flow, encouraging or discouraging the productive use of credit based on market conditions. So a fixed supply of money doesn’t hinder investment. But maybe I’m missing something?
The gold standard with a low 1-2% inflation rate yielded quite a prosperous era for humanity no doubt, where economic growth exploded yet price stability remained. And gold was the soundest money at the time, and now second only to bitcoin. In the modern US Treasury base layer era, dollar supply has inflated around 7-10% I believe. Economic growth has continued trending up, while prices are rising. So maybe I’m a Neanderthal, but it would make more sense that the base layer of a monetary protocol have a fixed supply so no Cantillon effect takes place. Inflation of the monetary base has to benefit some at the detriment to others. But honestly I’m not knocking gold or the precious metals, it’s prudent to have some.
And so far, I haven’t really seen a convincing case for why inflation the money supply is necessary. If you have some please share. But from another perspective, it’s essentially saying eroding of purchasing power at a certain pre-approved rate is acceptable. I’ll say this, the only compelling case I’ve heard is that without an inflating money supply, investment would reduce and hoarding happens. However in my opinion, that doesn’t stand up to common sense. A credit system and interest rates naturally ebb and flow, encouraging or discouraging the productive use of credit based on market conditions. So a fixed supply of money doesn’t hinder investment. But maybe I’m missing something?
The gold standard with a low 1-2% inflation rate yielded quite a prosperous era for humanity no doubt, where economic growth exploded yet price stability remained. And gold was the soundest money at the time, and now second only to bitcoin. In the modern US Treasury base layer era, dollar supply has inflated around 7-10% I believe. Economic growth has continued trending up, while prices are rising. So maybe I’m a Neanderthal, but it would make more sense that the base layer of a monetary protocol have a fixed supply so no Cantillon effect takes place. Inflation of the monetary base has to benefit some at the detriment to others. But honestly I’m not knocking gold or the precious metals, it’s prudent to have some.
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