[audleman]

A little deflation discourages spending, a little inflation encourages it. A lot of either is ruinous. Your example is one with deflation at an average of 120% for a decade straight. How well would an economy with inflation of 120% work out? Just ask Argentina.

Maybe a little inflation is good for us, the problem is how often it becomes a lot. Since 1920, at least 55 hyperinflation events have taken place, destroying savings and creating economic hardship [1]. Such events generally result from the mismanagement of financial systems and the economy by central governments.

Bitcoin offers an alternative in which sound money exists outside the control of governments and central banks. Who knows where it'll go, but it's an interesting experiment.

[1] https://assets.website-files.com/614e11526f6630959fc98679/61...