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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: cosmicforce who wrote (480174)	9/27/2021 8:39:37 PM
From: neolib	Read Replies (1) \| Respond to of 541138

"I think this is a typo - " Why? I'm saying the same thing. The total number of bitcoin is capped. That doesn't mean transactions with them are capped. I'm just pointing out that IF bitcoin could say replace the entire world's monetary system its going to do so with 21M coins. Which means each coins value will be very high. That is what I'm calling a massively deflationary monetary system. We could do the same with fiat $. We could have capped the number of $ at 21M too, way back, and the value of one of those $ today would be very high, i.e. a house would cost a $ perhaps, and as a result we would deal with lots of 0's behind the decimal point of most things we buy, which would be inconvenient, but of course bitcoin is digital which can handle that. But my question remains, what is the advantage of a hugely deflationary monetary system, and if that is a feature and not a bug, than why don't we do the same with fiat monetary systems? For some reason our current monetary system thinks 2% inflation is "optimal".