Azz on Nostr: In a hyperbitcoinised would, every sensible business will have cash reserves, which ...

In a hyperbitcoinised would, every sensible business will have cash reserves, which they will draw on in times of crisis. This is possible because the savings do not lose purchasing power with time and will appreciate at the average rate of econic growth.

Further, around half of all Bitcoins will be held, and the other half will be in circulation. The total amount of monetised goods will be backed by half of the total amount of Bitcoin. If more Bitcoin is held, the purchasing power will increase and the probability of buying at a discount will be greater than 50%. This will cause holders to sell Bitcoin for goods, increasing the amount of Bitcoin in circulation until it balances again. Speculation on the total economic output will inform price and provide a reliable signal for investment planning making investment more efficient.