Inflation is of course a stealth tax. It would be nice if more people realised this. Bitcoin is of course a response by the tech community to this stealth tax.
inflation is neither stealth nor a tax.. as the price of an item can clearly be seen going up when theres been no improvement, or the item has been reduced in quality/size and remain at the same cost.
The economy works on inflation, as that’s how people get pay raises, the company or person charges more for their goods or services, to allow them to pay more for their staff and suppliers, so that their can pay more etc.., etc.. in a developed country, the target is 2%.. for a developing country is much higher as their people is underpaid, and their currency is valued much lower and the difference is needed for them to reduce the gap between the developed and developing. Likewise you are more likely to get a bigger pay rise if the company you work for is growing or you are growing with additional skills or responsibilities.
the increase in prices is not going to any directly authorities normally, thou at the moment there is a fiscal drag, therefore it’s not a tax.
As for bitcoin, it’s far too unstable for it to be a practical currency. Even the fluctuations in stable currencies makes dealing internationally a right PITA, hence why banks/platforms charges exchange rates to cover the differences in exchange rates. Those who don’t have a fixed rate for a set period of time and hope that it balances out throughout that period.
the only value in bitcoin is the greater fool value, buy some and hope that a greater fool is willing to pay more for it later…. thinking that a country would use it for their main currency just opens the question, why don’t that country create their own digital block chain? Thousands of block chains has already been created.
trying to use it as a currency when the “value” of it can fluctuate greatly is neither a good prospect for the buyer or seller… if the price goes up, the buyer has just paid a hell lot more for an item than needed, if the price goes down; the seller has just sold something for less than it‘s worth.
www.youtube.com
