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RE: Left-Wing Chronicles: Billionaires Shouldn't Exist.

in LeoFinance2 years ago

I read this and found it very interesting but I don't know if I fully understand everything in the post. At first glance I don't think I agree with just "printing" more Hive. That would just devalue it to my understanding. The reason that governments can't just print money is because it devalues the currency by leading to higher inflation. Inflation is meant to increase in proportion with the increase in GDP so that the dollar maintains its value. Right now with covid, money is being printed to subsidize businesses and reduced employment, but nothing new is being produced and the effect has been higher inflation - the cost of goods has increased significantly in 2021 compared to previous years.

So in the case of Hive maintaining its value as I understand it: as more and more Hive is printed we need that to be offset by growth in the form of new users, and also with more people locking it up in their wallets.

Did that make sense or did I miss the mark on what you're saying?

What you said about Musk and Tesla is interesting, I never thought of it that way. From a practical perspective (aside from cashing everything out at once) his money in the form of stock is effectively completely liquid and can maintain its value. He can use the stock as collateral at the bank to take out a low interest loan which he can use to pay for his lifestyle. Living off the debt also makes his income tax free. Its kind of one of those perks of being rich, there are all kinds of ways to avoid paying taxes lol.

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At first glance I don't think I agree with just "printing" more Hive.

We are already doing this.

It's going fine.

Clearly, you have a very good understanding of the situation.

Much better than average.

You're only missing out on one key variable... actually maybe you aren't.
The key variable is that if the money you print adds more value than it dilute, everyone wins.
You've already somewhat mentioned this by saying this:

Inflation is meant to increase in proportion with the increase in GDP so that the dollar maintains its value.

Exactly. We can print money and pay for things if those things aren't bloated pork and they actually have more value than they cost (investment).

Okay gotcha. That makes sense to me. I realize that we are printing Hive everyday I just didn't get this part

The key variable is that if the money you print adds more value than it dilute

which obviously you just said haha 😆

🤔 So I guess the community would just have to determine what projects add value to the platform which is being done through votes. Okay I think I'm all caught up now hahaha. The light bulb finally turned on 💡