> Storing value should make the value go up over time because technology is deflationary.
Where do the advancements in technology come from, if the money is all in cold storage? Technological deflation is a return on investment. It isn't magic.
If you financially starve a market, the price of goods goes up, not down, over time. As the means of production and service capabilities collapse. That is why things in poorer countries tend to be more expensive: they don't have the industrial capacity to produce at high and increasing efficiency.
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That would be the reason for the caveat... If everyone is saving, no one is being productive with that miney. ie deflationary effects minimized.
But people do more than just save. They always will. In times of economic certainty, they can invest a lot more. It's harder than ever to invest now but that hasn't stopped the world from progressing anyways. Progress is just human nature. And that IS magic, endowed in us by our Creator.
We have a natural incentive to progress. Don't need magic for people to want to improve their lives. They just do.
The money is never all in cold storage. I think that's where your comment is unrealistic. Someone's money might be all in cold storage. But there will always be money doing things. Again, people naturally want to improve their lives. And you can't eat a Bitcoin.
