If I can passively generate wealth by doing nothing but waiting, so can everyone else. Only suckers would work.
This is basic macroeconomics but for some reason crypto believers just choose to live in an alternative reality.
Also, it worked for thousands of years with gold. Whole civilisations have run on gold, for thousands of years.
Every time in history when some innovation comes up people doing the old way were saying "that's not possible. it will never work. you don't understand the basics of X". History surely rimes.
Would lending be allowed in your model? If so, what makes it different from the status quo (fractional reserve banking and ultimately debt becoming money itself)? If not, how do I start a business or purchase a home without the lump sump required to do so under my pillow?
How do you adapt the monetary base to increased or decreased production capacity in a world based on the Bitcoin standard?
Not every fundamentally broken economic model is an innovation, and just because everybody tells its proponents so does not make this idea some kind of underdog stroke of genius.
The same thing that incentivizes people to spend their USD today instead of passively getting rich using VTSAX
Sure, no eating, heating, transport, comms, but you can do that. Also very ecological. Plus you safe like 0-2% per year on prices.
> This is basic macroeconomics
What do they say happens when you have 2% deflation?
You have to have a lot of institutional checks and balances and almost unshakable faith in those institutions for things to functions. That really doesn't exist in reality.
I will give you that a perfectly managed currency (with cycles of inflation and deflation) is better than a deflationary currency for economic activity. But, you have to see that no such thing exists. The US dollar central management have been reasonably good - but that's the exception, not the rule.
TIL nobody uses the euro, pound, yen or renminbi.
Basic here means fundamental, not surface-level.
It's like saying carbon is a basic building block of life. It doesn't mean that if you dig deeper, it's actually something else. It means that carbon is where everything starts, and you go from there.
I personally have a bit more than a single undergrad econ class under my belt.