Yes you may not cash it in today if it&#x27;s going to be worth more tomorrow but you also wouldn&#x27;t have the money to use for something else you value.<p>I don&#x27;t see how that&#x27;s different from choosing not to spend $600 for a computer today knowing that it&#x27;ll be only cost $500 a year from now. You buy it today because it has a higher value to you now rather than a year from now (we still prefer things sooner as opposed to later, despite deflation). You would also may choose to cash in the $600 knowing well that it will be worth more if you wait because you want to spend it on something now.<p>Even with deflation, people would still spend money as we prefer to consume now rather than later. If cash had a positive return, I&#x27;d imagine riskier assets would have an even greater return so you wouldn&#x27;t necessarily be all tied in cash. I know cash has a negative return (due to inflation) but I still hold it.