Discussion
The Schelling point is constant money supply.
Anything else is arbitrary.
Expected price appreciation or depreciation will be priced in by the markets. 🤯🤯🤯
Nobody but Saifedean inspired maxis think that a fixed number of monetary units is a good idea.
It certainly isnt and never has been a Schelling point.
and yes, the market would adapt.
it would adapt by locking down capital and recession.
not a great outcome IMHO.
A couple of points:
- I did not read Saifedean's texts. Cannot comment on that
- A fixed number of units does not lead to a constant supply (considering loss of keys or intentional destruction)
- Fixed supply does not lead to sustained recession.
The last point is often poorly understood. Do you assume that people will rather lock down their capital instead of investing because they expect higher purchasing power due to economic growth? But what if many people do so? Indeed economic decline, which would in turn lead to lower purchasing power instead of higher. So the assumption does not hold for the majority of people.
In the end, the prices will reflect these expectations and the rational decision is to invest if you can produce more value than you consume for production.
If you still think I am wrong, please let me know where. I have already learned something from you today.