Its a simple matter really. If twice as many people are eating twice as much food, you'll need to print twice as much money to keep prices stable. Otherwise, the price of food will double.
The central bank prints money. That is a fact. What people forget is the fact that this is useful to an economy. The central bank can abuse its power, and inflate away your cash holdings. (ie: print too much money). That is why BTC are pegged at 21 Million coins.
So the question now is, what will an economy based off of a heavily depreciating asset look like. What are the risks?
The central bank prints money. That is a fact. What people forget is the fact that this is useful to an economy. The central bank can abuse its power, and inflate away your cash holdings. (ie: print too much money). That is why BTC are pegged at 21 Million coins.
So the question now is, what will an economy based off of a heavily depreciating asset look like. What are the risks?