It definitely isn't improving business productivity. Nothing improves business productivity like fiat which has an ever expanding supply.
If inflation was non existent or radically less than what it is today would people be so keen to invest their money in companies or spend so much time and effort trying to hoard money for the future?
People who are into Bitcoin talk about inflation like it's a bug but I think it is a feature.
Which is mostly caused by humanity using fossil energy to boost the output of the economy.
An economy that expends the energy on so many more things than just enabling people to be fed and live modestly comfortable lives.
An economy that is thus harmful as it entirely neglects the urgent crisis.
Humanity is at a point where we ought to think about actually cooling down the economy to drastically reduce our emissions until industries and energy generation will slowly turn to being climate neutral.
The much decried deflation is precisely what would be the better dynamic for the economy in this situation, rather than an inflation dynamic that virtually turbo charges the system.
I'm aware that this is a bold statement, but I wouldn't be surprised if in some 50-100 years Bitcoin were to turn out as the fundamental technology that enabled humanity to overcome the crisis, despite consuming resources that right now appear to many as wasted.
To make it blunt: yes, I absolutely think that in our current situation inflation _is_ a bug. Possibly a fatal one.
As it stands our current civilisation is a ponzi scheme that relies on constant technological innovation in order to sustain itself. This constant technological innovation is partly fueled by the deterioration of value built into the money system.
When I said it was a feature not a bug I was talking about it from a nation state perspective. The problem with the Bitcoin community is that they don't acknowledge the indirect benefits of fiat that they benefit from so they are blinded to the potential benefits to the environment that Bitcoin could provide.
Bitcoin has inflation. One coin every ten minutes. Tic toc next block.
There's the question of when new money enters the world, who gets to have it? Should it be randomly distributed, or should one guy in charge of the money printer get to keep most of it for himself and all his friends, lie about having done that, and then gaslight people to say all of that was okay anyway?
If inflation was non existent or radically less than what it is today would people be so keen to invest their money in companies or spend so much time and effort trying to hoard money for the future?
People who are into Bitcoin talk about inflation like it's a bug but I think it is a feature.