>That is yet another feature which is mistaken by crypto advocates for a bug.
Whether it is a bug or a feature depends on whether it favours you or not. Anyone who owns assets and pays wages would think it is Christmas every day of the year. If nothing changes, they draw ahead without needing to do anything.
> Imagine the reverse: a deflationary currency, which becomes more valuable over time. You would have little choice but ...
No, I'd do exactly what I do now and invest the money in things that grow faster than the value of the currency. Nobody would care that the currency is deflating at 2% p.a. if there is 5% to make in the stock market.
The value of having a consistent measuring stick to figure out what is going on without constantly having to twiddle numbers for inflation would be a remarkable boon.
> Why would you spend your money building a business or hiring workers?
That one is an easy one, because people generally value present consumption and would give you money in exchange for goods and services. As a business owner you have a chance of ending up with more money than you started with.
Whether it is a bug or a feature depends on whether it favours you or not. Anyone who owns assets and pays wages would think it is Christmas every day of the year. If nothing changes, they draw ahead without needing to do anything.
> Imagine the reverse: a deflationary currency, which becomes more valuable over time. You would have little choice but ...
No, I'd do exactly what I do now and invest the money in things that grow faster than the value of the currency. Nobody would care that the currency is deflating at 2% p.a. if there is 5% to make in the stock market.
The value of having a consistent measuring stick to figure out what is going on without constantly having to twiddle numbers for inflation would be a remarkable boon.
> Why would you spend your money building a business or hiring workers?
That one is an easy one, because people generally value present consumption and would give you money in exchange for goods and services. As a business owner you have a chance of ending up with more money than you started with.