Forget Google - It's time to break up the payment processing duopoly of Visa and MasterCard

submitted by magnora7 from medium.com

sorted by:
top
newinsightfulfun
you are viewing a single comment's thread.

view the rest of the comments →

[–]itsoktobewhite 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (3 children)

negative interest

Isnt that just inflation?

[–][deleted] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (2 children)

No. To understand this imagine money as rl stamp cards. In our currently (most of the world) implemented money systems, every money unit generates stamps over time if taken out of the system from the owner to save it up for worse times and enough new stamps generate a new money unit. Negative interest means, you loose stamps on every money unit over time, so it makes no sense to save it up that clearly, because you loose some of it by saving it over time.

Inflation / Deflation on the other hand is the change in the relation of the growth between the rl economy ( produced new tangible goods ! ) and the amount of money in the whole system of the currency.

[–]itsoktobewhite 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (1 child)

I see your point but I dont understand how they aren't effectively doing the same thing.

Negative interest - you take money away from hoarder.

Inflation - the hoarders money has less buying power over time.

Inflation is why people generally dont hoard money. They invest in things to make the money grow. So wouldnt some form of 'negative interest' system on wealth not money work better. Something like once you hit a billion bucks that is enough. You can still generate more wealth but you must give half to the needy.

[–][deleted] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

I think now, this is an excellent idea. But the greed problem stays and that is why i think there still will be people trying to circumvent it just for the kicks.