Something with quickly fluctuating value may be useful for trading goods, but very poor for paying wages IN OUR CURRENT ECONOMIC MODEL.
Borrowing in a deflating currency is very difficult, as your future earnings are likely to decrease in number, not value. The lender has no reason to lend if they can't get more from interest than what they expect from just holding the bitcoins.
Some would welcome this model, where there is little or no investment lending, and everything is bought only with readily available funds.
YC funding would probably be radically different. Buying a car, a house, or anything else using credit would be extremely difficult, if not impossible for most people.
While putting things you don't need on credit cards is only really good for the credit card companies, borrowing to expand your business, reliable transportation to work, or even reasonable housing is the grease in the current world economy.
Our economic model is mostly a recent phenomenon, historically, deflation was the norm. I don't think that going backwards is actually going to help anyone except the enormously wealthy, who can easily hold onto the majority of their wealth while it accrues value.
Borrowing in a deflating currency is very difficult, as your future earnings are likely to decrease in number, not value. The lender has no reason to lend if they can't get more from interest than what they expect from just holding the bitcoins.
Some would welcome this model, where there is little or no investment lending, and everything is bought only with readily available funds.
YC funding would probably be radically different. Buying a car, a house, or anything else using credit would be extremely difficult, if not impossible for most people.
While putting things you don't need on credit cards is only really good for the credit card companies, borrowing to expand your business, reliable transportation to work, or even reasonable housing is the grease in the current world economy.
Our economic model is mostly a recent phenomenon, historically, deflation was the norm. I don't think that going backwards is actually going to help anyone except the enormously wealthy, who can easily hold onto the majority of their wealth while it accrues value.