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Some people look at a future for multiple generations. In this case it is more important as immortal money.
Discussion
Monero has a lower inflation rate than gold. As is famous, gold still has the same purchasing power than it had 2000 years ago.
A hard cap is a stupid knee-jerk reaction to fiat insanity. Understandable, but ultimately poor monetary policy.
Of course, it's likely that the price of gold is being artificially suppressed and it should be two or three times higher than it is right now.
Gold failed at multiple things, like:
-store it safe
-transacting easy
-checking if the gold is real or fake
Because of this failing IOU'S where born. This lead eventually to fractional banking.
I'm not trying to make the case that gold is better money. I'm just saying that it didn't fail because it has supply inflation.
Furthermore, I'm saying that having a hard cap is not a necessary, even desirable, condition of hard money.
Why do you say hard cap is not desirable condition for hard money?
Because over time total productivity increases and the nominal cost of production falls. So you're always in the position of representing the value of *more stuff with the same quantity of money.
You end up disincentivizing economic activity because it's better to hold your money unless you have some surefire get rich scheme.
In other words, a little supply inflation is good acchually.
I am of the view that a lot of products are just bought because fiat doesn't gain or at least not loss purchasing power. I don't like the throwing away society. With a disinflationary currency, you will have less incentives to do so.
People will spend no matter how disinflationary the currency is because they need some food and other things. Nobody will do hunger strikes because the money is gaining purchasing power for example. People will be concious when they want to buy something.
Yes, I agree.
The difference is on this part with bitcoin: the people who transact will pay the cost instead of the holders.