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This is an excerpt from my stream on 5/31/2024
Link here: https://www.youtube.com/watch?v=7877dCO9Q3I
=============== CHAT GPT SUMMARY ================
INFLATION in CRYPTOCURRENCY is necessary to maintain healthy networks because it incentivizes continuous MINING and STAKING, ensuring network security and stability. Without INFLATOIN, the fixed supply of coins lead to reduced miner rewards over time, risking network abandonment.
Controlled inflation also mitigates DEFLATIONARY pressures, encouraging spending and investment rather than hoarding. Additionally, it provides funds for ongoing development and maintenance of the network, fostering long-term sustainability and growth. Overall, moderate INFLATION supports an active, secure, and evolving cryptocurrency ecosystem.
General Benefits of Inflation:
1. **Stimulates Spending**: Encourages consumers and businesses to spend and invest rather than hoard money, driving economic growth.
2. **Debt Relief**: Reduces the real value of debt, making it easier for borrowers to repay loans.
3. **Wage Adjustments**: Allows for nominal wage increases without reducing purchasing power, helping maintain living standards.
4. **Avoids Deflation**: Prevents the negative effects of deflation, such as reduced consumer spending and economic stagnation.
5. **Flexibility in Monetary Policy**: Provides central banks with tools to manage economic cycles and stabilize the economy.
