Hanshan on Nostr: I didn't say it will stop spending though. It disincentivizes spending and investment ...

I didn't say it will stop spending though. It disincentivizes spending and investment to the maximal extent possible.
Osbviously people will still exchange their money for physical needs rather than die.

So while I understand we need to prevent centralized-controlled inflationary insanity, A hard cap is a really bad solution.

In a way it doesn't matter.
markets need capital to flow without undue friction, so it guarantees the creation of inflationary l2s.

So we're either screwed because capital can't move and innovation stops,
or because what we're actually using has no connection to the base layer.