5 ms·
Its stock-to-flow ratio is the highest among metals, it is also divisible (although not easily), durable, portable, etc. which all make it desirable. However it
by arbawk 6y ago
Its stock-to-flow ratio is the highest among metals, it is also divisible (although not easily), durable, portable, etc. which all make it desirable. However it's worse in most of these categories when compared to Bitcoin.
Scarcity is a desirable property of money unless you like the Cantillon Effect.
https://en.wikipedia.org/wiki/Richard_Cantillon#Monetary_theory https://en.wikipedia.org/wiki/Richard_Cantillon#Monetary_the...
Early monies like shells were often abandoned when a new supply was found as it allowed for precisely this re-allocation of wealth before re-pricing occurred.
If you'd like to see where money was dumped into the economy endlessly, you can look at Weimar Germany and the value of its currency thereafter. https://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_Republic https://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_R...