ELI5: What’s the obsession with creating a deflationary monetary system, among crypto enthusiasts?

It takes about 90 seconds to understand that a society that experiences perpetual 2-3% a year deflation would be in just as awful of a situation as a society experiencing perpetual, say, 8%+ inflation.

If you can "earn" 2-3% a year, fully risk free, in spending power on your saved money/wealth, there's very little reason for larger holders of wealth or banks to risk that money by investing in new businesses and inventions. They'd just hoard it and go to the beach. Fear of losing 2-3% a year to inflation is what keeps modern banks lending to new business and mortgages at a higher rate in order to make the money productive.

There would still be some business investment in a fully deflationary society but it would be severely slowed compared to things today.

There's a good place for bitcoin and crypto and the technologies they give us to function along side existing financial models. I just see no actual benefit in using them or pushing them as a replacement. In a forever deflationary system, the original rich basically stay the only rich forever and over a long period of time (decades or more) you'd just end up with a far more angry crowd of young people and working class than exist today, with far greater inequality. And justifiably so.

What am I missing? Or is the "replace it all with bitcoin" community not actually as large as it sometimes seems?

submitted by /u/seeroy
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