• The 'problem that nobody really cared about' is a broken financial system. One that's inflating away working people's buying power through unregulated money printing.

    I'm guessing the 'more pressing problem' is climate change. But what if bitcoin ended up being a solution? We 'waste' something like 2% of all economic output just to stay ahead of inflation. I wonder how much carbon that equates to?

  • A...

    broken financial system

    ...there may be but it doesn't seem like bitcoin is the answer, nor deregulation.

  • The 'problem that nobody really cared about' is a broken financial system. One that's inflating away working people's buying power through unregulated money printing.

    I'm guessing the 'more pressing problem' is climate change. But what if bitcoin ended up being a solution? We 'waste' something like 2% of all economic output just to stay ahead of inflation. I wonder how much carbon that equates to?

    This really doesn't make sense from the point of view of economics!

    'Printing money' is what governments of independent countries with their own central banks and currencies do to formulate their monetary policy. It may or may not lead to inflation, depending on how they do it and what they do with taxes.

    Creation of money is highly regulated - only banks and goverments are allowed to do it. And it is not a bad thing - zero inflation is not desirable.

    It would mean people needn't bother to buy things they don't immediately need as the price will never go up. So demand would go down and the economy would contract, unemployment up, demand further down, etc. A slump, which would soon lead to falling prices - until the government intervened, by printing some money to get things going again, like after the 30s depression.

    We don't 'waste output' to stay ahead of inflation.

    Bitcoin and cryptos may have their uses but this far right / libertarian vision of governments losing control of monetary policy would not be a good place for society to get to.

About

Avatar for georgert @georgert started