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33 sats \ 4 replies \ @Undisciplined 20h \ parent \ on: MONEY CLASS OF THE DAY: Money Illusion and Unit Bias, Bitcoiner style econ
That's just one version of the subsequent exchange that I'm talking about though. If the value were falling so quickly that you couldn't get a sufficient amount of gold/bitcoin/stocks, then people would stop using the currency as a MoE.
Yes-ish... Historical record doesn't bear that out. We keep using money weeeeelll into hyperinflation. It certainly fulfils this role in the Western world, covid inflation aside
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They continue to use the same type of money, but they do assign a lower and lower value to the currency. So in a sense they do stop accepting it as a valid form of money, because they're not willing to trade it except by multiplying the volume by extremes.
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No, they continue to trade it but faster and faster — hot potato style. Velocity up, etc, cuz on the margin it's more costly for you to hold cash
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I can't argue that people don't give up on their failing fiat as quickly as one might expect
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