Stability
Did you know that one of the main functions of major banks in different countries is the function of ensuring the stability of the currency. What do you think is stability?
Surely you wouldn't mind the following definition? Stability is the ability of the system to function without altering its structure and being in equilibrium over time.
And what is price stability?
Do you think these are more or less the same prices for a long time?
You are very wrong! Price stability implies a slight increase in prices, not their invariability.
Conclusion. Keeping money is bad for your health.
Let's take a closer look. What is the stability of the US dollar, Japanese yen?
Let's see how the US dollar depreciated. It is well known that Americans love bigmak.
Here are the US dollar price statistics for Bigmak.
(USD prices):
Year 1967 1986 1996 2001 2010 2019
Bigmak 0.49 1.60 2.36 2.54 3.73 5.58
That is, in 53 years bigmak has increased in price by 12 times, and in the last 9 years by 1.5 times. You will say that the house is built not of bigmaks, but of brick. True. And what, do you think the price of bricks in dollars is not rising? Everything is more expensive.
A slightly better situation with the Japanese yen. The yen is less depreciating over time. You can buy Japanese yen at the bank, but note the spread (the difference between buying and selling). You can fly to Japan and buy a yen there. In addition, climb Mount Fujiyama, admire Sakura. However, to sell the yen, again have to breathe in the delicate aroma of Japanese flowers. You can leave Japanese currency for your children. You can also buy ingots of precious metals, but before that, ask yourself where you can then sell them. Don't want to tell us your address? You can buy stocks, but stock prices have never been stable. You can also buy paintings written by robots, T-shirts of famous football players, wreckage of meteorites and more, but the prices for such goods are very unstable.
Cryptocurrency. It is much more interesting, but also more difficult, you can both get rich easily and almost bankrupt. Cryptocurrency has a number of advantages over regular (fiat) currencies, but how can a layman find among the thousands of cryptocurrencies the ones that will rise in price? The fact is that even fundamentally high-quality cryptocurrencies can grow sharply and then lose their value in the market for a long time, sometimes at times, just because they are still not popular enough. And if popular, they are depreciated because many others are depreciated. If you have nerves of iron, or you know the future, then you do not need a stable currency.
We do not know how much the dollar, bitcoin or anything else will cost either tomorrow or in a year, but we have a clear sequence of actions and mechanisms (description) that provide significant stability for our cryptocurrency - parabola.