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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.



“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.


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.


Bitcoin is priced in fiat which is itself volatile. Bitcoin must detach from fiat to gain true stability.


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

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


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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