Too much inflation is obviously bad, but it's also bad if the most attractive investment in an economy is the currency itself. If a system actively discourages people from investing or spending their currency, things grind to a halt. The people who benefit the most are those with the most idle cash. The people who suffer the worst are those who are forced to spend their limited cash on basic necessities.
To be clear: I'm not advocating for unchecked inflation or runaway spending. I think the current US inflation rate is too high and excessive stimulus spending is ill-advised. However, investors have been investing their cash in assets and investments to avoid inflation long before Bitcoin was invented.
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Too much inflation is obviously bad, but it's also bad if the most attractive investment in an economy is the currency itself. If a system actively discourages people from investing or spending their currency, things grind to a halt. The people who benefit the most are those with the most idle cash. The people who suffer the worst are those who are forced to spend their limited cash on basic necessities.
To be clear: I'm not advocating for unchecked inflation or runaway spending. I think the current US inflation rate is too high and excessive stimulus spending is ill-advised. However, investors have been investing their cash in assets and investments to avoid inflation long before Bitcoin was invented.