If you were in Cypress, or had a less trustworth (irony?) government that went out of business, you probably didn't do well either.
If you were in Cypress, or had a less trustworth (irony?) government that went out of business, you probably didn't do well either.
The world don't work that way. Cash inflates. Houses decay. Land uses shift. Tastes in art change. Uranium decays. Even our gold supply increases at a rate of 1-2%.
It's the Red Queen's Race. You've got to run as fast as you can just to stay in one place. The only way to maintain value is to invest in productive activities.
http://en.wikipedia.org/wiki/2012%E2%80%9313_Cypriot_financi...
So the only people who suffered were those who were daft enough to deposit amounts large enough to be uninsured in a badly run bank - can't say I have much sympathy.
I should probably write up a good explanation of why asking for zero inflation == asking for price controls, and is not a good idea either.
That's only true of cash, and money in checkings accounts. Money deposited in savings accounts yields interest, which (on average) more than compensates for inflation.
If you're talking about money market accounts (where I believe you need to park a substantial amount and can't touch the money in the account for something like 10 years, but correct me if I'm wrong), you can get up to 3% yield (just beating the stated inflation of 2%).
Am I missing something?
Interest rates are very low right now, but you appear to be off by a order of magnitude.
What if next year some other cool new "currency" comes along and no one wants your stinkin' bitcoins any longer? Does it matter that supply has a cap? No. It matters as little as the limited supply of paintings created by some forever unknown artist.