Should we rethink digital currency—not as mineable fungible tokens like Bitcoin, but as true IOUs that reflect money’s role as a medium of exchange with no intrinsic value?
Should digital currency act as pure IOUs (no intrinsic value) rather than speculative assets? Vote & discuss.
As I understand it (as pretty much a complete layperson with a high school level of economics but a programming degree), currency having a large value as a speculative investment is a terrible thing. This is what happens with deflation. If you know your money is going to be worth more next month, next week, tomorrow, you’re going to hold off spending as much as you can. Businesses will make less money, and will cut spending and staff, leading to people spending less in a nasty cycle. This is why a little bit of inflation is generally considered a good thing.
