JohannYoddler on Nostr: The argument is based on human psychology. Getting more for less is deflation, and ...

The argument is based on human psychology. Getting more for less is deflation, and getting less for more is inflation. The argument doesn't touch tech advances which are deflationary. The government argues that people will get scared by high inflation to the point that it's great depression, never throw anything out. Crock pot butter containers , quart jars are gold, wash paper plates, etc. Money is so valuable that buying and consuming will put factories and content creators out of the market so that you can't buy or entertain yourself even if you wanted to. This is deflation. So really high prices at market peaks and really low crashes at troughs. So the FED was created. "See the creature from Jekyll Island". If you inflate the money supply you can put money in the hands of people so they won't feel bad about spending it. Side effect the government is really bad about getting this right. So they made a private central bank. 😟 Because that works so much better. Those people are also really bad about this. So they constantly inflate the money supple by 2 percent figureing people are smart and can make more from jobs companies and out run infaltion. The poor who don't understand the system get screwed by 2 percent in good years and by who knows how bad in bad years because the official inflation numbers are um cooked. The government saw this system and did a thing. Under the most charitable interpretation they saw a way to get everyone to use the USD after world war 2 and brenten woods and used borrowing money as a way to increase buying power for votes. This causes the law of supply and demand to lower the price of dollars. Which to the financial uneducated seems like someone else , not the government raising prices. If they do this slowly , productivity and tech will create enough wealth to overcome this and the government will collect more in taxes and be able to pay for this. See the Laffer Curve. But governments are idiots and deficts and debt are a thing. Again the average person doesn't know any of this. So a guy comes along puts most of the metrics of what makes good money into a system called bitcoin. See the history of money. (use brave or duckduck go to search that and Bitcoin.) Now he didn't get it perfect and the network has changed, and he had to put an incentive in to get people to use it, which creates inequality which has it's own downsides, and lets face it , if you are in charge of security you might screw it up. Phishing works. But putting the cost of a family meal at sizzler per month into bitcoin will net you more than any other investment. I believe that it will continue to do so.

Disclaimer Don't take this education as advise. Do your own homework. Understand how this works. Don't sell to exchanges or big companies. If deflation gets to bad than use a different chain. If you need income that you invested more than you should, consider borrowing against the asset, running a minning node and lighting network , or splitting your investments in half, crypto and covered call etf. If you have a 401k , consider a loan of 5% at 8% intrest and put that into a bitcoin etf. I still think you will come out ahead. As long as you don't buy at the highs of this bull run and sell when it drops 80% over two years. We all have done that. The halving runs on a four year cycle. The ETF's will amplify the ups and downs I think , but generally if you wait four years it will go up again. If the ETF amplify's than we are not at this bull runs top. Plus the network will grow, because I stayed in this last cycle and others hopefully will to. Or you can mortgage your house, use leverage on a foreign exchange and not put stop losses in and bet on the price by the end of the week. You could be insanely rich doing this. 🦖 Your millage may vary.