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0 pointshunter2_2y ago0 comments

Saving more than spending has also been popular advice for fiat, at times. More for medium/long-term personal purposes at the expense of immediate macro purposes, but I think that applies to both systems.

0 comments

zirgs2y ago

Central banks inflate their currencies on purpose to discourage hodling. Short term savings for emergencies are good. But by hodling fiat long term - you are just losing money.

Cryptobros thought that they are smarter than central banks and didn't bother to implement proper monetary policy in the Bitcoin protocol to prevent its volatility.

eric_cc2y ago

“Proper monetary policy”

Want to elaborate? Bitcoins monetary policy is beautiful in its simplicity and predictability. In that sense, it stands in stark contrast to fiat.

zirgs2y ago

A proper monetary policy would ensure price stability and predictable inflation. Bitcoin price has been all over the place, and its volatility makes it both a bad investment and a bad currency.

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tome2y ago

> But by hodling fiat long term - you are just losing money.

Real interest rates are typically positive, so no, you are not.

hunter2_OP2y ago

The concept of hodling fiat could mean cash under the mattress or could mean an interest-bearing account. It's ambiguous.

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zirgs2y ago

Central banks inflate their currencies on purpose to discourage hodling. Short term savings for emergencies are good. But by hodling fiat long term - you are just losing money.

Cryptobros thought that they are smarter than central banks and didn't bother to implement proper monetary policy in the Bitcoin protocol to prevent its volatility.

eric_cc2y ago

“Proper monetary policy”

Want to elaborate? Bitcoins monetary policy is beautiful in its simplicity and predictability. In that sense, it stands in stark contrast to fiat.

zirgs2y ago

A proper monetary policy would ensure price stability and predictable inflation. Bitcoin price has been all over the place, and its volatility makes it both a bad investment and a bad currency.

1 more reply

tome2y ago

> But by hodling fiat long term - you are just losing money.

Real interest rates are typically positive, so no, you are not.

hunter2_OP2y ago

The concept of hodling fiat could mean cash under the mattress or could mean an interest-bearing account. It's ambiguous.

j / k navigate · click thread line to collapse