You have no doubt seen in the press numerous types of digital assets, as with government money, there are many different types. With digital assets, some are used for paying out of fees or interest on invested digital asset funds or goods and services, whilst others are used for long-term storage of value and seldom used in commercial transactions. The main difference between these two types is that one depreciates in value, and the other appreciates in value.The value of government money (such as US Dollars, English Pounds, or Euros) depreciates in value and has negative interest rates when combined with monetary inflation. In an uncertain economy, people and businesses tend to hold on to their money while the economy improves. However, this behaviour weakens the economy further, as a lack of spending causes further unemployment, a drop in prices, and lowers profits. This reinforces economic uncertainty whereby giving individuals and companies even more incentive to hoard their money. As spending continues to slow, prices drop again, creating incentives for people to wait as prices fall further. This deflationary spiral is counteracted with monetary policies e.g., quantitative easing from central banks, debt monetisation, social spending, and, more recently, negative interest rates. With negative interest rates, government money deposited at a bank forces depositors to pay the bank to hold their money. This means that depositors are penalised whilst borrowers enjoy earning money by taking out a loan. This has the perverse effect of penalising responsible behaviour (e.g., saving your money), instead promoting irresponsible behaviour i.e., borrowing for speculation (also known as \u2018shorting the currency\u2019).The original hamster moneySource: TPXSome Digital Assets share the same value attributes but with much more volatility. Dogecoin is a good example. The coin has no inherent control over the money supply, so from an inflationary perspective,\u2026<\/p>","protected":false},"excerpt":{"rendered":"
You have no doubt seen in the press numerous types of digital assets, as with government money, there are many different types. With digital assets, some [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/posts\/4546"}],"collection":[{"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/comments?post=4546"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/posts\/4546\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/media?parent=4546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/categories?post=4546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/tags?post=4546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}