Imagine a world in which the only money people accept are 21 million magic coins.
If you have one of these magic coins, and you hold on to it, everything becomes massively cheaper with time. Houses go from one coin to a half coin in 5 years, and then to a quarter coin.
Most companies struggle to make a profit in coins. Because for every one that makes a profit, another one must by definition lose. It’s a zero sum game.
AI and robots do most everything. The governments distribute fractions of coins from taxes for basic necessities, but nobody wants to give out coins, for any reason.
The idea of “asset allocation” makes almost no sense. Conservative investors simply hold coins. Venture investors speculate in schemes to multiply coins, including AI-run factories, AI-meme stocks, and high-yield coin loans (with high risk of default).
Loans are made using collateral (houses, cars, businesses). But these face the problem that the collateral always depreciates versus the loan. So mark-to-market liquidations are frequent and interest rates are high.
Governments stack magic coins as a measure of security. Wars are very hard to finance, as public debt is literally impossible. Nobody wants to lend the government coins.
Welcome to the upside down, Alice-in-Wonderland future.
MAGIC COIN