If anything, you finally made me realise why deflation is not a good thing - so kudos for that :)
However, wouldn't it be healthy if an asset (who uses HIVE or crypto on the regular as a "currency"?) experienced a slow deflation over time? Enough to encourage trust and HODLing, but not so much that "I can't sell today - it might be worth twice in a month!" ?
In my head this makes for a healthier ecosystem than this persistent inflation model we see in fiat. (Regardless of "healthy" inflation levels or not)
You are viewing a single comment's thread from:
I think AMM farming has taught us that inflation is amazing.
Even hyperinflation is awesome; as long at the community itself controls that inflation.
Looking at something like CUB that has hyperinflated from $13 to 30 cents in less than a year,
I still didn't lose any money.
Why? Because I'm the one controlling and profiting from the hyperinflation.
The goal of every currency should be stability.
We have to properly manipulate interest rates just like a central bank to get that stability.
Are you talking about high-APY staking? (I don't know the ins and outs of CUB and searching for posts here didn't really help)
If so, doesn't that simply incentivize people to endlessly stake and never use the coin?
If I understand your point correctly, it's that the inflation is not "out of control" but that everyone earns more in turn (so if inflation went up 100% I also got twice the coins I had), but I don't understand how that's better than a more stable rate.
It sounds like a sort of rollercoaster where for one, prices are unstable (purely psychologically this is a PITA - always having to re-calculate profit/loss based on more factors) but the "market cap" if you will stays the same. What benefit is there to intentional hyper-inflation?