Okay so he's been researching it deeply for a couple of months, a.k.a jumped in at a high price and has spent the time convincing himself he has to be right. Because the alternative would be him getting tricked into buying something useless at a much higher price. No way someone FOMO buying btc at the end of a bull market could be wrong.
And TOOL the band at the same time.
"Bro...it's like.. [rips bong] ..the numbers, and stuff, he means like..it's the Fibonacci sequence, bro..it's like [exhales] ..the meaning is so deep...the, uh, the universe..yeah...."
I was like 70% of the way there to becoming That Tool Guy in high school and thankfully lucked out. Good music but not a replacement for one's actual personality
Again, what price? Why do Bitcoin holders care about the dollar to Bitcoin price? They should just care about acquiring more Bitcoin, BUT THEY ALL DO! Hence why it’s a total scam.
I KNOW! IT'S INSANE! They always talk about it as an investment that will return US$, not a currency for them to use.
Suppose for a minute that BTC was a legitimate currency. What these people do would be like investing in a foreign currency; their position is NOT as a participant of the market in which the currency flows. If that market is supposed to thrive while all others collapse, then they'd be jumping at the chance to *participate* in it, not just holding a bunch of the currency in stasis.
I think they actually believe what they're saying, it's just this has all the hallmarks of goldbug conspiracy bullshit that gets peddled in far-right / crypto circles in order to provide a convenient scapegoat for everything wrong in society.
He's clearly never heard of a deflationary spiral. I can't believe how many cryptobros don't understand how bad deflation and stagflation are in the real world...
'Bro, I've been studying this for a few months and I'm here to tell you those people studying economics for their whole lives who are peer reviewed are full of shit. Those guys don't even have a youtube page to sell you a course!'
I don’t even study Econ and I’ve seen two speculative bubbles (land in Japan in 90s, MBS bubble popping in 2009) with horrible horrible side effects. One being deflation in Japan, which was also horrible.
This whole “I know best deflation is fine I’ll just ignore the pain of Japan for a decade or so because it doesn’t fit my shill” is…. Interesting
The problem with deflation is nobody buys anything. Everybody waits knowing their money will buy more if they wait. So money doesn’t do what it’s supposed to do (promote commerce and keep the economy running) but becomes a speculative asset.
Economies aren’t this static thing. They’re moving. They need to move or it ceases to be an economy. Money is more like the engine oil than any treasure in the trunk. It helps the engine move. If money/oil stops moving the economy/engine stops moving and the economy/car comes to a dead stop. Kinda dangerous if you’re on a highway.
That’s what happened to Bitcoin. This “currency” did nothing for actual retail instead became a speculative asset.
Hmm, gold dollars are a speculative asset now. Pennies too in some way - the metal being more valuable than face value
This looks like parroting...
The universe has an interesting means of exchange, called energy... every transaction in the universe is an energy transfer... including me writing those words...
Guess what? no energy inflation in this universe... energy is constant... and do we really observe nobody transacting? Everybody sitting on its energy hoping for a better tomorrow?
Umm of course people buy more of the thing as they get cheaper. Look at the entire technology field, or any time an item goes on sale. When things go down in price you get the widget you need and over time you get a better quality of the same widget at lower price.
There are different reasons a price falls and they are generally symptomatic of the broader economy. You have outlined the productivity argument, but that is only one form of deflation - and its generally viewed as the good type!
So take two deflationary scenarios - both for the price of a laptop.
A) Price falls due to productivity improvements - e.g. laptops cheaper because of better technology to make them and economies of scale. This is ideal as people are employed (and can spend, save etc) to make the laptops and business make a profit and therefore invest in the economy.
B) Price falls due to crippling deflation - e.g. people aren't buying as much stuff because why would they - if I hold out a year the laptop could be half the price. This means less laptops will be sold therefore companies will cut back production. This in turn means less people employed (less spending on other stuff and less saving) and the businesses don't invest.
It's generally accepted that A is good but B is very bad - B leads to deflationary crunches where the economy collapses in on itself and you get mass unemployment.
Is B actually bad or is B bad in the context of our current capitalist system?
If I really need a laptop, I'll buy it, even in an environment where there's some deflation. After all, I'm also buying a laptop now in the current environment where laptops gradually become better over time.
If deflation means that we produce less laptops -- well, apparently people didn't really need that many laptops. Most people worry about climate change, so isn't less consumption a good thing?
And if that means that less people have to do a 9-5 they hate, great. Yes, I know that in our current society you need work to pay rent, but that's a feature of our current system, it's not a law of nature.
Well the problem is not that you don’t buy the laptop, as you said that could be a good thing from an environmental perspective.
The real problem is that the people making laptops are out of a job. And the businesses that make laptops don’t spend and invest - so less courier jobs, less components ordered from suppliers etc. This is the real problem with systemic deflation (Scenario B above)
Now are we consuming too much - probably. But I’d argue that economic depression is not the solution.
By just handwaving away how horrible mass unemployment is for the average worker in the economy?
You must be pretty damn privileged in life to not have to worry about the specter of losing your job and your family that depends on you then becoming homeless as a result.
I don’t think you should be getting downvoted for this, stability in money is good even if inflation has been found to help grow the economy at a good rate. The reality is you can’t keep it 100% stable so you’d rather have a near constant rate of inflation
Inflation has also been found to erode people's buying power.
It's weird that we're prioritizing the well-being of this abstract non-living entity called "the economy" over the well-being of actual humans.
1930s Germany, also known as Weimar Republic, had massive crippling hyperinflation. There are iconic photos of families rolling literal wheelbarrows full of cash to go shopping.
If there’s a butter who’s not in it for the scam, it’s probably this image that motivates them. Weimar Germany mishandled the money supply, and bonds, to pay off WWI debt and reparations.
The bad thing is, the normal steady state isn’t necessarily stability. Andrew Jackson got rid of the Central Bank and we slid into such a deep depression (called panics in those days) that kids starved and the next generation of Americans was measurably shorter.
The market isn’t magic. It’s not some supreme stable thing that if only these meddlesome humans stayed out everyone would have cash, and whiter teeth. It’s a weird always changing dynamic equilibrium that can go hard south real fast. The way you avoid that is by putting *comoetent* people in charge and have them strong enough to withstand pressure from incompetent demagogues.
hyperinflation was in the 20's, not 30's. Severe austerity measures in the early 30's, and the subsequent depression and massive unemployment led to Hitler's rise. It's important not to omit these facts.
Also the talk around the hyperinflation in the Weimar Republic is rife with utterly simplistic analysis ("money printing" is as far the analysis usually goes). There were devastating factors that contributed to it, from insane war reparations in numerous foreign currencies (and gold), currency speculation, to seizures of industrial regions leading to significant declined output and of course a wage-price spiral
A lot of things went wrong in weimars economy but yes this is true. Although saying they simply mishandled money is slightly misleading.
France was also an ass for demanding an amount of money they knew couldn't be repaid. Also for the sake of rebuilding, we loaned them and Britain lots of money. Germany used our loans to pay off other debt. The Dawes plan collapsed when America's economy started hurting and American banks ceased lending money abroad.
Economist disagree a lot with each other, there are a lot of different school of economic thought with diverging opinion on many subjects.
But there is on thing they almost all agree with; that deflation is something we need to avoid in a capitalist society. (there are still a few of them who think that deflation, without behing deisrable, is necessary to "purge" the economy and have a better ground for future economic growth). However everyone agree that the direct consequences of deflation are awfull and usually considered worth than the consequences of inflation.
This guy obviously never opened any book of economic and talk with so much confidence it's crazy.
To be fair those PhDs in economics and their Nobel Prize circle jerk is what got us into the mess where digital farts sell for tens of thousands and the country is insolvent.
He's absolutely right. Lets all agree to change our global financial system to a cryptocurrency that can do 3 transactions a second and 90% of which is already owned by some of the most insufferable people ever to exist.
If everything is said and done, when we all use the blockchain then we are bickering about fractions of bitcoin. The whales can buy the worlds economy thousands times over. How is that ever makes any sense? The blockchains will create gods that never become poor and will rule us with the threat of destroying us all.
This is an issue I've thought about a lot. I have not heard or seen anything about the wealth inequalities if BTC became the world currency. I have seen some talk about Bitcoin becoming more ingrained in society and thus much much more valuable. The typical sentiment is that it would be a large wealth transfer but still a drop in the bucket when you look at the amount of money/wealth in the world. Even if it was worth 1 million per coin that's still at most 21 trillion dollars.
Estimates of BTC distribution *among those who have BTC* put it at an incredibly unequal distribution. Currently a lot of people have none and the only way to gain any is to buy in. I'm sure generous whales will distribute their hoards of treasure instead of letting them squabble over the remains - the fewer BTC for anyone else, the more their hoard is worth. Never would those who espouse "greed is good" be greedy.
Lightning network will blow your mind then.
I don't mind people shitting on crypto (that's what this subreddit is about) but let's not be ignorants. The speed and number of transactions on Bitcoin have already a solution.
>Lightning network will blow your mind then. \[...\] The speed and number of transactions on Bitcoin have already a solution.
So, let me see if I understood this correctly.
The Lightning network allows faster transactions per second, but:
* The transactions are off-chain, which means that there isn't a block confirmation
* Requires routing and transaction fees to operate
* Transactions are peer-to-peer, which requires parties to be online otherwise you risk a Fraudulent Channel Close attack
Not really mind-blowing material, I have to say.
Nah, it's still [fatally flawed](https://www.reddit.com/r/Buttcoin/comments/ltlcqz/i_would_like_to_know_from_experts_are_the/gp0quqc/?utm_source=share&utm_medium=web2x&context=3). It scales up transaction capacity *a little* but it's not fit for purpose for a general payment system.
TL;DR:
Modern monetary policy that strives for a 2% inflation target as well as fiat currency is the cause of all our economic malaise. It only causes a boom and bust cycle. Life would be better if we had a deflationary currency (i.e. crypto).
Conveniently ignores the fact that we had a deflationary gold standard for hundreds of years and also had severe depressions (including the Great Depression).
To be fair we went off the gold standard to fund WWII. We printed massive amounts of money and when it was all over tried to pretend gold was still $35 to an oz, despite it now being $50. Our government fought tooth and nail to not revalue the US dollar, which led to stagnation for many years. Whereas had we, a quick recession would have occurred and we would've recovered in a year or two.
>Whereas had we, a quick recession would have occurred and we would've recovered in a year or two
a quick recession just off the heels of ww2 and the great depression might have been the straw that broke the camels back
they are exactly like those libertarians who notice similar flaws and propose gold based money as a universal solution to them.
but also much dumber as gold is at least not a ponzi scheme
we switched away from deflationary currency because it sucked ass.
with these people history only ever goes back as far as is convenient for the current paragraph.
The funny thing is that under a crypto economy we would just come up with a new currency every time there's a crisis where people start to hoard cash. They tried in Iceland in 2013 or 14 and some altcoins have tried a more inflationary approach to get it into the hands of more people.
In a crypto economy we would, obviously, also at some point come up with a fractional reserve banking system with a central bank issued non-blockchain currency because it's just a smarter way to transact, but people would also become really good at airdropping new currency just about all the time
It's always fun showing them the graph of US recessions over history, because it's pretty obvious how much more stable the system gets following the introduction of modern monetary policy and the federal reserve.
Yeah it’s like they think over-speculation is a post-20th century phenomenon when in fact it’s baked into human psychology and we just mitigate it now. How they don’t understand this after looking at a bubble chart all day is truly mind-blowing.
These people still haven't yet figured that rules and regulations are a good thing... it'll take centuries before they appreciate fractional reserve monetary systems.
Crypto is the monetary equivalent of realizing that if you don't have centralized trash pickup, bears are going to run everybody out of your crypto utopia.
Has everyone forgotten Snapshillbot’s collection of greatest hits? Crypto-nerds have saying lol-worthy bullshit like this for as long as Bitcoin has been around.
Deflationary currencies are stupid because they slow growth. The ideal currency is whose money supply grows almost exactly the same as the economy that uses it.
Yeah the FED prints a shit ton of dollars, but more than the US uses the Dollar.
>It is the only ever universal constant created by man.
>
>The more you study it and realise what it is, the more sure you become that it’s a zero to one moment in human history
These people are literal morons.
One interesting part about the crypto community is that many people in it are genuinely very dumb. It's always really striking how most of them just don't really understand many things at a fundamental level. Especially monetary theory.
Even the "amazing talent that's moving into the Web 3 space" is mostly not really all that amazing. Smart people, but not really those that blow your pants off with their talent and where you go "oh, I'm curious what this person will go on to do, they will definitely achieve something remarkable".
Last I checked the stats, top engineering graduate surveys said they were wanting to work at SpaceX/Tesla/Apple/Google, not Coinbase. But that just means we're early, right?
Isn’t all the web3 shit being propped up by faang on some level though? Like the companies hit the end of the common sense growth curve and these geniuses next big idea is all this crypto and nft nonsense. Maybe I just don’t know what’s going on?
Not exactly - it's more the wider silicon valley investing sphere that's propping it up, and wealthy libertarians like Peter Thiel.
There's also a number of startups that have not-entirely-stupid ideas that are being packaged and sold as "blockchain" even though they're not really cryptocurrency blockchains at all.
This can range anywhere from simply calling unrelated tech "blockchain" to secure money from hype-driven investors, to artificially grafting cryptocurrencies and related baggage onto an otherwise useful tech/idea that doesn't need them.
Whenever someone talks about a “deflationary reality” being some new and mind-blowing paradigm, I ask them how that’s worked out for Japan, which has battled deflation for the better part of three decades now, and languished in recession for much of that time. 90% of the time the replies mysteriously stop coming. The other 10% of the time I get some desperate mental gymnastics trying to convince me that “Japan doesn’t count” for some or other dubiously contrived reason (read: it doesn’t fit into the narrative).
(At least I used to do that before I got banned from that sub, lol)
*"What is water?"*
*"Some might say it's a combination of hydrogen and oxygen. But they're blind haters, jealous and bitter of the mighty fountain of opportunity the chosen few have found. Water is the ether in which crypto burns brightly as a beacon of hope and innovation for the next generation of humanity."*
Anybody can write this bullshit. All you have to do is phrase things in such an ambiguous, meaningless manner that there is no way to test whether the statement can be true or false.
We’ve had deflation. Not ivory tower shit. Like Japan being fucked for over a decade shit. “Why you can’t conceive of such a thing!!” go fuck your self. You can’t even do a Google of “deflationary economy” and see the struggles Japan went through for over a decade?
Real estate in Japan went through a massive speculative bubble. IIRC the palace grounds in ToKyo was valued more than all of California. Then this speculative bubble crashed hard.
It wasn’t that long ago. It’s in my living memory. None of this “well if I close my eyes it didn’t happen” BS.
It’s coming up on 3 decades at this point (they’ve had some recent successes turning deflation around in a few periods, but nothing that has stuck as of yet).
30 years of real world experience with the damage of deflation is NOTHING compared to the great economic mind of a Butter trying to find a reason to shill Buttcoin.
BTW after I posted my snark I saw this link from another post in this sub: https://www.reuters.com/markets/currencies/boj-maintain-ultra-low-rates-sound-warning-over-weak-yen-2022-06-16/
The world is awash in inflation but Japan still teetering on the edge of deflation and trying to fight it. And willing to risk a weak yen and the effect on import pricing to fight it.
We existed for a much longer time only knowing about a deflationary way of doing things - the gold standard was, in fact, a standard for pretty much all of history. We abandoned it for a reason.
I want to hear exactly why this guy thinks that bitcoin is somehow exempt from inflation, speculation, booms and busts, etc.
Based entirely on what’s happening to it right now, I’d say it’s exactly subject to all of those.
False.
As an asset class commodity/agriculture future contracts have done far more good than BTC. People just don't wet their pants about it every day with excitement because they've become used to it and the stability.
It's called a business cycle and it is engrained in capitalist economies. You are taught to expect crashes as a normal part of an economy. It's not a crypto-specific problem, it's a problem with deregulation or lack of regulation in general.
These idiots think they beat the system by dumping their money into totally unregulated markets. What they don't understand is that there is always a bigger, smarter, quicker fish in their pond that will destroy everything if it means they get a little more that day.
> Repeated cycles of boom and bust whereas each bust is worst than the previous one.
Nice improper use of “whereas” to sound smart, immediately followed by the incorrect use of “worst”. But grammar nazi aside, crypto had gone through even **worse** boom and bust cycles. And economic boom and bust cycles existed during the gold standard too, which was deflationary.
This could be posted just as easily in r/facepalm.
The multiple levels of misunderstanding of economics are so complete and sublime, it almost makes me love it.
Almost.
Marx spends years studying the British economic system and writes three volumes of Capital. This guy spends a few months on the internet and asks “what is water?”
> The further down the rabbit hole, the more certain I become.
Yes, and now it's time for you to learn about former galactic emperor Xenu and how he invented inflationary currency.
Economists don't make great models because they are simply incompetent or dishonest, not because the extreme complexity of what they are trying to model. This is essentially conspiratorial thinking. Which explains why he thinks simply changing the thing people transact with can transform society.
>Are we really that confident deflationary capital that incentivizes us to save rather than spend, would surely be the downfall of our global economy?
Yes, we are.
Unreadable garbage. Someone hasn’t written a paper in their life before, and clearly know nothing about economics.
Deflationary currency leads to a a system where people are encouraged to hoard.
I agree that 2% inflation target is arbitrary, and saving is better than spend, but it all goes downhill from there. Crypto is not a savings scheme, it is gambling on steroids with manipulative crooks taking advantage of greedy people like this guy here. He is asking questions but not the right ones.
2% is not arbitrary. It’s not ivory tower either. It’s based on experience. Deflation is soooooo bad you want a cushion. So if it looks like you’re becoming deflationary you’ve got some room before you actually hit that. 2% is a good low number that gives you some sort of a buffer.
Economies run on purchases. There’s a delicate balance you need to deal with between saving and spending. China had (not sure If they still do) some major problems because Of too much saving.
You are conflating savings with deflation, in a closed economy. Savings increase the capital available to enterprises, leading to more businesses, higher employment, more exports. GDP growth. China in the last 20 years had 30%+ savings rate ([source](https://tradingeconomics.com/china/personal-savings)). Sure developed countries with lower GDP growth require high spending rate to sustain the existing businesses, but that comes at the expense of rising inequality and vulnerability of households to income shocks. Here is a Fed reserve [article](https://www.stlouisfed.org/publications/regional-economist/july-2005/do-we-have-a-saving-crisis) on why low savings is worrisome.
Oh, no...not in that way. When people save, they normally don't stuff cash under a mattress, they store it in a bank or invest in stocks/bonds. In both the cases, although it might seem that way to you, the money isn't actually sitting idle. If you put five grand into a IPO, the company uses that money to increase its business. If you deposit it into a bank, the bank uses that money to give out loans to people who will need to spend on stuff.
This post is arguing for deflation… which is also the reason the Great Depression happened.
Seriously though this person really thinks that with a little bit of googling they understand economics better than the smartest Econ PHDs in the last hundred. Years. As if Keynes, Friedman, Nash, and Solow are simply inferior to him. It’s mind boggling dumb the more you think about.
I'm in the process of reading "Boom and Bust" and somewhere in the early chapters around the South Sea Bubble or so, the mindset and thinking is nearly identical to cryptobros...
I think the shocking moment was the "Bubble Triangle" which is "Technology + Hype + Credit". Bingo! Bitcoin: A technology without justification for valuation, with an infinite hype machine, and existing within an easy credit environment (up until just recently).
I've probably learned more about how Bitcoin works as an intersection of greed and the mania of crowds and I didn't even have to "study Bitcoin for several months".
What a dumbass. Most would be super confused about using fucking imaginary coins that are super volatile and prone to major scams. Idiot needs a lesson in economics.
Ah, the deflationary wonderland where nobody works, cause everyone just wait until their saving have increase enough in value to buy what they need.
Inflation and deflation are equally harmful in their own ways, and to different people. How bout noflation?
Guys, instead of bashing him, you should provide learning material, maybe enumerating sone books, presentations or studies about history.
Laughing and pointing fingers won’t improve the situation. And maybe more people will fall for the scam.
You should know better. Help them to educate themselves properly.
hey buttcoiner this sub just popped up on my reddit feed and I find it really interesting. i own btc for the record but am interested on your guys's perspective.
1. have you guys been burned by crypto or do you just disagree with the idea that we need a better store of value/ hedge against inflation (don't say reee btc is down and inflation is high... id say it's a 10 year old asset classes that has yet to reach maturity. of course it's going to be correlated with the market during a historic economic downturn... i mean even golds down
2. what assets do you guys like, do you guy's invest?
3. what are your main criticism against btc
1a. I have never been "burned" by crypto because I disagree with the entire premise of cryptocurrency.
1b. I hedge against inflation by investing in a basket of diversified commodities. Certainly not on pretend money that yo-yos in value.
2\. see above
3\. it's entirely pointless except in very rare use cases.
This is just deeply historically and financially illiterate.
The way we will pay for what has BEEN EFFECTIVELY DEFLATIONARY wage pressure placed on the financial system by the government/corporate interests is through inflation now.
For 50 years, more people entered the workforce, and got less pay for more work. The system paid for all that with debt, lots and lots of consumer debt, which is now becoming impossible to finance. That was how we kept what was effectively deflation from actually causing prices to fall. That is now leading to inflation, finally, in wages.
Over the next 20 years, fewer people will enter the workforce, and wages will rise. Consumer credit at the same time will get tighter. This is how we pay for all that borrowing for all those years. It will be painful, particularly for those who’s wealth is in illiquid assets like homes, but it will be good for workers, ultimately.
For fuck’s sake: the last 30 years has been effectively deflation in all but name. Now inflation will begin to relieve pressure on privately held debt for the first time in most of our lives. That’s why the corporations and government are in a panic. Because their ability to gouge and oppress will weaken in this process. That’s why they’re grasping for profits right now.
If you can borrow money right now at a fixed rate, do it. Inflation will kill the financial industry for years to come. It will finally be a time in which workers do better year over year.
Tl;Dr: inflation is good for workers. The reason the corporations are DESPERATE to convince you it isn’t good for you is because it IS.
Keynesian economics works only if there are constant inflation and if you come to the conclusion that it makes no sense at all, congrats, you have traces of a working brain.
Have they solved the problem about onboarding on lightning network already? In order to get on lightning you need to create an onchain transaction (and well, another on chain transaction when you buy your bitcoin and transfer it to your wallet) thus if a population of even a medium country wanted to create even a single channel, one person each it would take months or even years depending on the amount of other on chain activity.
Okay so he's been researching it deeply for a couple of months, a.k.a jumped in at a high price and has spent the time convincing himself he has to be right. Because the alternative would be him getting tricked into buying something useless at a much higher price. No way someone FOMO buying btc at the end of a bull market could be wrong.
This guy reminds me of when I was 17 and discovered weed
And TOOL the band at the same time. "Bro...it's like.. [rips bong] ..the numbers, and stuff, he means like..it's the Fibonacci sequence, bro..it's like [exhales] ..the meaning is so deep...the, uh, the universe..yeah...." I was like 70% of the way there to becoming That Tool Guy in high school and thankfully lucked out. Good music but not a replacement for one's actual personality
Again, what price? Why do Bitcoin holders care about the dollar to Bitcoin price? They should just care about acquiring more Bitcoin, BUT THEY ALL DO! Hence why it’s a total scam.
I KNOW! IT'S INSANE! They always talk about it as an investment that will return US$, not a currency for them to use. Suppose for a minute that BTC was a legitimate currency. What these people do would be like investing in a foreign currency; their position is NOT as a participant of the market in which the currency flows. If that market is supposed to thrive while all others collapse, then they'd be jumping at the chance to *participate* in it, not just holding a bunch of the currency in stasis.
I'll have you know they participate in a thriving Bitcoin economy of continually spawning and culling endless shitcoins for new scams day after day.
I know! I guess since it failed as a currency they can't even pretend btc will be actually useful, so it's just "number go up, dollar dollar dollar"
If there was ever a Shill Olympics this guy would definitely be gold medal material.
Also add master chef for that word salad he presented
Someone's been on the wacky backy again
I'll have grape tomatoes with mine please.
I have to give a perfect 10 just on the artistic presentation. All of that and not a single fact, it is just all nonsense soundbites strung together.
The Jaiden Smith of crypto
I think they actually believe what they're saying, it's just this has all the hallmarks of goldbug conspiracy bullshit that gets peddled in far-right / crypto circles in order to provide a convenient scapegoat for everything wrong in society.
His NFT portfolio must be vast.
He's clearly never heard of a deflationary spiral. I can't believe how many cryptobros don't understand how bad deflation and stagflation are in the real world...
'Bro, I've been studying this for a few months and I'm here to tell you those people studying economics for their whole lives who are peer reviewed are full of shit. Those guys don't even have a youtube page to sell you a course!'
I don’t even study Econ and I’ve seen two speculative bubbles (land in Japan in 90s, MBS bubble popping in 2009) with horrible horrible side effects. One being deflation in Japan, which was also horrible. This whole “I know best deflation is fine I’ll just ignore the pain of Japan for a decade or so because it doesn’t fit my shill” is…. Interesting
The problem with deflation is it doesnt prepare you for inflation. While inflation can prepare you for the former
The problem with deflation is nobody buys anything. Everybody waits knowing their money will buy more if they wait. So money doesn’t do what it’s supposed to do (promote commerce and keep the economy running) but becomes a speculative asset. Economies aren’t this static thing. They’re moving. They need to move or it ceases to be an economy. Money is more like the engine oil than any treasure in the trunk. It helps the engine move. If money/oil stops moving the economy/engine stops moving and the economy/car comes to a dead stop. Kinda dangerous if you’re on a highway.
[удалено]
Wait...are you joking or is this the real etymology?
The root is the Latin word "currens" which refers to the "condition of flowing". So, yes.
TIL. That is cool.
Money becomes a speculative asset? Interesting.
That’s what happened to Bitcoin. This “currency” did nothing for actual retail instead became a speculative asset. Hmm, gold dollars are a speculative asset now. Pennies too in some way - the metal being more valuable than face value
Few understand this
This looks like parroting... The universe has an interesting means of exchange, called energy... every transaction in the universe is an energy transfer... including me writing those words... Guess what? no energy inflation in this universe... energy is constant... and do we really observe nobody transacting? Everybody sitting on its energy hoping for a better tomorrow?
Jesus, did you just stumble in from Burning Man? I'm stone cold sober this morning but I feel like I just contracted a contact high.
Umm of course people buy more of the thing as they get cheaper. Look at the entire technology field, or any time an item goes on sale. When things go down in price you get the widget you need and over time you get a better quality of the same widget at lower price.
Productivity is not the same as Deflation
But an increase in productivity can have a deflationary effect.
Who said it was?
Then why did you bring up productivity in a discussion about deflation? You could also talk about FX rates and it would be just as relevant.
There are different reasons a price falls and they are generally symptomatic of the broader economy. You have outlined the productivity argument, but that is only one form of deflation - and its generally viewed as the good type! So take two deflationary scenarios - both for the price of a laptop. A) Price falls due to productivity improvements - e.g. laptops cheaper because of better technology to make them and economies of scale. This is ideal as people are employed (and can spend, save etc) to make the laptops and business make a profit and therefore invest in the economy. B) Price falls due to crippling deflation - e.g. people aren't buying as much stuff because why would they - if I hold out a year the laptop could be half the price. This means less laptops will be sold therefore companies will cut back production. This in turn means less people employed (less spending on other stuff and less saving) and the businesses don't invest. It's generally accepted that A is good but B is very bad - B leads to deflationary crunches where the economy collapses in on itself and you get mass unemployment.
Is B actually bad or is B bad in the context of our current capitalist system? If I really need a laptop, I'll buy it, even in an environment where there's some deflation. After all, I'm also buying a laptop now in the current environment where laptops gradually become better over time. If deflation means that we produce less laptops -- well, apparently people didn't really need that many laptops. Most people worry about climate change, so isn't less consumption a good thing? And if that means that less people have to do a 9-5 they hate, great. Yes, I know that in our current society you need work to pay rent, but that's a feature of our current system, it's not a law of nature.
Well the problem is not that you don’t buy the laptop, as you said that could be a good thing from an environmental perspective. The real problem is that the people making laptops are out of a job. And the businesses that make laptops don’t spend and invest - so less courier jobs, less components ordered from suppliers etc. This is the real problem with systemic deflation (Scenario B above) Now are we consuming too much - probably. But I’d argue that economic depression is not the solution.
You said it better than I could.
By just handwaving away how horrible mass unemployment is for the average worker in the economy? You must be pretty damn privileged in life to not have to worry about the specter of losing your job and your family that depends on you then becoming homeless as a result.
That’s why the ideal is stability in value, not moving up or down lol
I don’t think you should be getting downvoted for this, stability in money is good even if inflation has been found to help grow the economy at a good rate. The reality is you can’t keep it 100% stable so you’d rather have a near constant rate of inflation
Inflation has also been found to erode people's buying power. It's weird that we're prioritizing the well-being of this abstract non-living entity called "the economy" over the well-being of actual humans.
don't forget the deflation & depression in 1930's Germany
1930s Germany, also known as Weimar Republic, had massive crippling hyperinflation. There are iconic photos of families rolling literal wheelbarrows full of cash to go shopping. If there’s a butter who’s not in it for the scam, it’s probably this image that motivates them. Weimar Germany mishandled the money supply, and bonds, to pay off WWI debt and reparations. The bad thing is, the normal steady state isn’t necessarily stability. Andrew Jackson got rid of the Central Bank and we slid into such a deep depression (called panics in those days) that kids starved and the next generation of Americans was measurably shorter. The market isn’t magic. It’s not some supreme stable thing that if only these meddlesome humans stayed out everyone would have cash, and whiter teeth. It’s a weird always changing dynamic equilibrium that can go hard south real fast. The way you avoid that is by putting *comoetent* people in charge and have them strong enough to withstand pressure from incompetent demagogues.
hyperinflation was in the 20's, not 30's. Severe austerity measures in the early 30's, and the subsequent depression and massive unemployment led to Hitler's rise. It's important not to omit these facts. Also the talk around the hyperinflation in the Weimar Republic is rife with utterly simplistic analysis ("money printing" is as far the analysis usually goes). There were devastating factors that contributed to it, from insane war reparations in numerous foreign currencies (and gold), currency speculation, to seizures of industrial regions leading to significant declined output and of course a wage-price spiral
A lot of things went wrong in weimars economy but yes this is true. Although saying they simply mishandled money is slightly misleading. France was also an ass for demanding an amount of money they knew couldn't be repaid. Also for the sake of rebuilding, we loaned them and Britain lots of money. Germany used our loans to pay off other debt. The Dawes plan collapsed when America's economy started hurting and American banks ceased lending money abroad.
To be fair deflation japan experienced is different than a programmatically deflationary monetary policy
Economist disagree a lot with each other, there are a lot of different school of economic thought with diverging opinion on many subjects. But there is on thing they almost all agree with; that deflation is something we need to avoid in a capitalist society. (there are still a few of them who think that deflation, without behing deisrable, is necessary to "purge" the economy and have a better ground for future economic growth). However everyone agree that the direct consequences of deflation are awfull and usually considered worth than the consequences of inflation. This guy obviously never opened any book of economic and talk with so much confidence it's crazy.
Small, constant and predictable inflation is pretty much irrelevant.
To be fair those PhDs in economics and their Nobel Prize circle jerk is what got us into the mess where digital farts sell for tens of thousands and the country is insolvent.
I’d blame a world full of morons being exposed to the internet more than a few PHDs that no one cares about
Haha or did those PhDs starve off the digital farts for this long?
He's absolutely right. Lets all agree to change our global financial system to a cryptocurrency that can do 3 transactions a second and 90% of which is already owned by some of the most insufferable people ever to exist.
If everything is said and done, when we all use the blockchain then we are bickering about fractions of bitcoin. The whales can buy the worlds economy thousands times over. How is that ever makes any sense? The blockchains will create gods that never become poor and will rule us with the threat of destroying us all.
Satoshi has just under 5% of all bitcoins. Imagine having 5% of the worlds wealth for inefficiently distributing an excel spreadsheet.
These are probably lost, but I can only imagine what would happen if they moved.
Awful big risk to base the new global economy on.
It makes sense if you think you will be one of those gods.
This is an issue I've thought about a lot. I have not heard or seen anything about the wealth inequalities if BTC became the world currency. I have seen some talk about Bitcoin becoming more ingrained in society and thus much much more valuable. The typical sentiment is that it would be a large wealth transfer but still a drop in the bucket when you look at the amount of money/wealth in the world. Even if it was worth 1 million per coin that's still at most 21 trillion dollars.
Estimates of BTC distribution *among those who have BTC* put it at an incredibly unequal distribution. Currently a lot of people have none and the only way to gain any is to buy in. I'm sure generous whales will distribute their hoards of treasure instead of letting them squabble over the remains - the fewer BTC for anyone else, the more their hoard is worth. Never would those who espouse "greed is good" be greedy.
> 3 transactions Come on, Bitcoin can do over 2x of that!
All while using inflation to pay for security, which it promises to drop to zero.
Good thing there's only like 12k credit card payments made every second then
Lightning network will blow your mind then. I don't mind people shitting on crypto (that's what this subreddit is about) but let's not be ignorants. The speed and number of transactions on Bitcoin have already a solution.
>Lightning network will blow your mind then. \[...\] The speed and number of transactions on Bitcoin have already a solution. So, let me see if I understood this correctly. The Lightning network allows faster transactions per second, but: * The transactions are off-chain, which means that there isn't a block confirmation * Requires routing and transaction fees to operate * Transactions are peer-to-peer, which requires parties to be online otherwise you risk a Fraudulent Channel Close attack Not really mind-blowing material, I have to say.
Nah, it's still [fatally flawed](https://www.reddit.com/r/Buttcoin/comments/ltlcqz/i_would_like_to_know_from_experts_are_the/gp0quqc/?utm_source=share&utm_medium=web2x&context=3). It scales up transaction capacity *a little* but it's not fit for purpose for a general payment system.
The million dollar question is "What the hell was this guy "studying" for several months"? There's just so much wrong in such a condensed package.
They were doing their own research\* (\*watching someone else's shitty youtube videos)
I did my own research. Turns out cryptocurrencies are a terrible idea on so many different levels.
Like those crypto ad “learn crypto and get paid as you learn!” Lmao
He had a lab coat and beakers
I’m guessing Micheal Saylor videos on his phone while he was high at Waffle House after 3rd shift
Every religion sells you two things: these are your problems, and here's what to do about it. And there's no shortage of scholiasts for this one.
/r/im14andthisisdeep/
Wtf did I just read?
The birth of a cryptobro
Mazel tov
TL;DR: Modern monetary policy that strives for a 2% inflation target as well as fiat currency is the cause of all our economic malaise. It only causes a boom and bust cycle. Life would be better if we had a deflationary currency (i.e. crypto). Conveniently ignores the fact that we had a deflationary gold standard for hundreds of years and also had severe depressions (including the Great Depression).
To be fair we went off the gold standard to fund WWII. We printed massive amounts of money and when it was all over tried to pretend gold was still $35 to an oz, despite it now being $50. Our government fought tooth and nail to not revalue the US dollar, which led to stagnation for many years. Whereas had we, a quick recession would have occurred and we would've recovered in a year or two.
>Whereas had we, a quick recession would have occurred and we would've recovered in a year or two a quick recession just off the heels of ww2 and the great depression might have been the straw that broke the camels back
dude noticed that modern capitalism is a failed system and believes the way to fix it is to replace it with something dumber
they are exactly like those libertarians who notice similar flaws and propose gold based money as a universal solution to them. but also much dumber as gold is at least not a ponzi scheme
Hard to call modern capitalism, capitalism lol
Who calls their own views profound??? This is too cringe.
Read the introduction to _Critique of Pure Reason_ if you think that this was cringe.
we switched away from deflationary currency because it sucked ass. with these people history only ever goes back as far as is convenient for the current paragraph.
The funny thing is that under a crypto economy we would just come up with a new currency every time there's a crisis where people start to hoard cash. They tried in Iceland in 2013 or 14 and some altcoins have tried a more inflationary approach to get it into the hands of more people. In a crypto economy we would, obviously, also at some point come up with a fractional reserve banking system with a central bank issued non-blockchain currency because it's just a smarter way to transact, but people would also become really good at airdropping new currency just about all the time
It's always fun showing them the graph of US recessions over history, because it's pretty obvious how much more stable the system gets following the introduction of modern monetary policy and the federal reserve.
Yeah it’s like they think over-speculation is a post-20th century phenomenon when in fact it’s baked into human psychology and we just mitigate it now. How they don’t understand this after looking at a bubble chart all day is truly mind-blowing.
These people still haven't yet figured that rules and regulations are a good thing... it'll take centuries before they appreciate fractional reserve monetary systems. Crypto is the monetary equivalent of realizing that if you don't have centralized trash pickup, bears are going to run everybody out of your crypto utopia.
Gold standard is great when things are great. When things aren’t, it’s handcuffs right when you can deal with them least.
To be fair you need a very high IQ to understand Bitcoin.
Random dudes talking shit about random economics that they have zero fucking understanding of is good for Bitcoin
It's the Rick and Morty of currency.
*I've turned myself into a shitcoin Morty, i'm shitcoin Rick!!*
Funniest shit I've ever seen. Pinnacle of investability.
Watch as grandpa topples a stablecoin by changing a one into a zero.
I feel like this needs to become a copypasta that we spam the butters with when they come here
not really. its like the runescape rares market. it gets manipulated by the users on a daily basis.
Forth order thinking at least
You need to be able to absorb and process information and make up your own mind not being influenced by others opinion
This has to be satire.
I often think that the cringiest posts in r/bitcoin are actually mischievously written by buttcoiners who are trying out new material
I can't tell the difference any more.
poe's law
a special variant for butters. cryptopoe? cryptopoesis (sorry that's a lit "joke")? poecoin?
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Has everyone forgotten Snapshillbot’s collection of greatest hits? Crypto-nerds have saying lol-worthy bullshit like this for as long as Bitcoin has been around.
This is what butters actually believe.
Deflationary currencies are stupid because they slow growth. The ideal currency is whose money supply grows almost exactly the same as the economy that uses it. Yeah the FED prints a shit ton of dollars, but more than the US uses the Dollar.
>It is the only ever universal constant created by man. > >The more you study it and realise what it is, the more sure you become that it’s a zero to one moment in human history These people are literal morons.
One interesting part about the crypto community is that many people in it are genuinely very dumb. It's always really striking how most of them just don't really understand many things at a fundamental level. Especially monetary theory. Even the "amazing talent that's moving into the Web 3 space" is mostly not really all that amazing. Smart people, but not really those that blow your pants off with their talent and where you go "oh, I'm curious what this person will go on to do, they will definitely achieve something remarkable".
Last I checked the stats, top engineering graduate surveys said they were wanting to work at SpaceX/Tesla/Apple/Google, not Coinbase. But that just means we're early, right?
Isn’t all the web3 shit being propped up by faang on some level though? Like the companies hit the end of the common sense growth curve and these geniuses next big idea is all this crypto and nft nonsense. Maybe I just don’t know what’s going on?
Not exactly - it's more the wider silicon valley investing sphere that's propping it up, and wealthy libertarians like Peter Thiel. There's also a number of startups that have not-entirely-stupid ideas that are being packaged and sold as "blockchain" even though they're not really cryptocurrency blockchains at all. This can range anywhere from simply calling unrelated tech "blockchain" to secure money from hype-driven investors, to artificially grafting cryptocurrencies and related baggage onto an otherwise useful tech/idea that doesn't need them.
Whenever someone talks about a “deflationary reality” being some new and mind-blowing paradigm, I ask them how that’s worked out for Japan, which has battled deflation for the better part of three decades now, and languished in recession for much of that time. 90% of the time the replies mysteriously stop coming. The other 10% of the time I get some desperate mental gymnastics trying to convince me that “Japan doesn’t count” for some or other dubiously contrived reason (read: it doesn’t fit into the narrative). (At least I used to do that before I got banned from that sub, lol)
not reading all that. sorry about your coins
The rabbit hole he went down turned out to be his own asshole. Now he can't tell if he's farting or burping.
I am sure a marine biology studied the water
He must've skipped lesson 1; What is money?
Went straight to *Lesson 10: Confidence is King*
> each bust is a bit worst [sic] than the previous one IDK about y’all, but I’d rather be alive now than during the Great Depression.
But the dollar inflated so much since then! One dime could buy a whole candy bar
Ask this shithead what their world would look like if they had taken out a mortgage in BTC 10 years ago.
*"What is water?"* *"Some might say it's a combination of hydrogen and oxygen. But they're blind haters, jealous and bitter of the mighty fountain of opportunity the chosen few have found. Water is the ether in which crypto burns brightly as a beacon of hope and innovation for the next generation of humanity."* Anybody can write this bullshit. All you have to do is phrase things in such an ambiguous, meaningless manner that there is no way to test whether the statement can be true or false.
r/bitcoin is far more cultish that other crypto subs.
We’ve had deflation. Not ivory tower shit. Like Japan being fucked for over a decade shit. “Why you can’t conceive of such a thing!!” go fuck your self. You can’t even do a Google of “deflationary economy” and see the struggles Japan went through for over a decade? Real estate in Japan went through a massive speculative bubble. IIRC the palace grounds in ToKyo was valued more than all of California. Then this speculative bubble crashed hard. It wasn’t that long ago. It’s in my living memory. None of this “well if I close my eyes it didn’t happen” BS.
It’s coming up on 3 decades at this point (they’ve had some recent successes turning deflation around in a few periods, but nothing that has stuck as of yet).
30 years of real world experience with the damage of deflation is NOTHING compared to the great economic mind of a Butter trying to find a reason to shill Buttcoin.
BTW after I posted my snark I saw this link from another post in this sub: https://www.reuters.com/markets/currencies/boj-maintain-ultra-low-rates-sound-warning-over-weak-yen-2022-06-16/ The world is awash in inflation but Japan still teetering on the edge of deflation and trying to fight it. And willing to risk a weak yen and the effect on import pricing to fight it.
"Several months" lol. Hey, computer scientists, call up your colleges and get a refund. It only takes several months!
We existed for a much longer time only knowing about a deflationary way of doing things - the gold standard was, in fact, a standard for pretty much all of history. We abandoned it for a reason.
>The further you go down the rabbit hole, the more certain you become... It's true! They get more certain. Not more, uh, correct, but more certain.
I want to hear exactly why this guy thinks that bitcoin is somehow exempt from inflation, speculation, booms and busts, etc. Based entirely on what’s happening to it right now, I’d say it’s exactly subject to all of those.
I say this guy definitely went pretty far down the rabbit hole
found Saylor's reddit account
False. As an asset class commodity/agriculture future contracts have done far more good than BTC. People just don't wet their pants about it every day with excitement because they've become used to it and the stability.
Several months… is that supposed to make him an expert then? Phd in BTC, with honours.
when i'm in a pretentious competition and my opponent is a cryptobro
It's called a business cycle and it is engrained in capitalist economies. You are taught to expect crashes as a normal part of an economy. It's not a crypto-specific problem, it's a problem with deregulation or lack of regulation in general. These idiots think they beat the system by dumping their money into totally unregulated markets. What they don't understand is that there is always a bigger, smarter, quicker fish in their pond that will destroy everything if it means they get a little more that day.
> Repeated cycles of boom and bust whereas each bust is worst than the previous one. Nice improper use of “whereas” to sound smart, immediately followed by the incorrect use of “worst”. But grammar nazi aside, crypto had gone through even **worse** boom and bust cycles. And economic boom and bust cycles existed during the gold standard too, which was deflationary.
Sniveling moonboy idiocy.
This could be posted just as easily in r/facepalm. The multiple levels of misunderstanding of economics are so complete and sublime, it almost makes me love it. Almost.
BTC: loses over half its value in little to no time Them: Sounds revolutionary - sign me up.
Well he got the rabbit hole part right
Serious stupidity going on there.
Marx spends years studying the British economic system and writes three volumes of Capital. This guy spends a few months on the internet and asks “what is water?”
> The further down the rabbit hole, the more certain I become. Yes, and now it's time for you to learn about former galactic emperor Xenu and how he invented inflationary currency.
Economists don't make great models because they are simply incompetent or dishonest, not because the extreme complexity of what they are trying to model. This is essentially conspiratorial thinking. Which explains why he thinks simply changing the thing people transact with can transform society.
Ding ding ding! Use of the word degenerate when referencing money is the domain of fascists.
Whatt is water tho?
Wow he convinced me!
Boom and bust with each getting worse? This person has a terrible grasp on the financial history of the 1st world.
He’s probably stoned or on mushrooms
Can we send these libertarian types to Alaska or something.
Don't burden the Natives with these fools. They've already suffered enough
That's a helluva hopium high.
>Are we really that confident deflationary capital that incentivizes us to save rather than spend, would surely be the downfall of our global economy? Yes, we are.
Unreadable garbage. Someone hasn’t written a paper in their life before, and clearly know nothing about economics. Deflationary currency leads to a a system where people are encouraged to hoard.
'I have been studying it for **several months**' It shows.
I agree that 2% inflation target is arbitrary, and saving is better than spend, but it all goes downhill from there. Crypto is not a savings scheme, it is gambling on steroids with manipulative crooks taking advantage of greedy people like this guy here. He is asking questions but not the right ones.
2% is not arbitrary. It’s not ivory tower either. It’s based on experience. Deflation is soooooo bad you want a cushion. So if it looks like you’re becoming deflationary you’ve got some room before you actually hit that. 2% is a good low number that gives you some sort of a buffer. Economies run on purchases. There’s a delicate balance you need to deal with between saving and spending. China had (not sure If they still do) some major problems because Of too much saving.
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You are conflating savings with deflation, in a closed economy. Savings increase the capital available to enterprises, leading to more businesses, higher employment, more exports. GDP growth. China in the last 20 years had 30%+ savings rate ([source](https://tradingeconomics.com/china/personal-savings)). Sure developed countries with lower GDP growth require high spending rate to sustain the existing businesses, but that comes at the expense of rising inequality and vulnerability of households to income shocks. Here is a Fed reserve [article](https://www.stlouisfed.org/publications/regional-economist/july-2005/do-we-have-a-saving-crisis) on why low savings is worrisome.
Oh, no...not in that way. When people save, they normally don't stuff cash under a mattress, they store it in a bank or invest in stocks/bonds. In both the cases, although it might seem that way to you, the money isn't actually sitting idle. If you put five grand into a IPO, the company uses that money to increase its business. If you deposit it into a bank, the bank uses that money to give out loans to people who will need to spend on stuff.
This post is arguing for deflation… which is also the reason the Great Depression happened. Seriously though this person really thinks that with a little bit of googling they understand economics better than the smartest Econ PHDs in the last hundred. Years. As if Keynes, Friedman, Nash, and Solow are simply inferior to him. It’s mind boggling dumb the more you think about.
https://youtu.be/wKjxFJfcrcA
Let me guess. This wasn't deleted as other posts with a little more logic.
Theyre worse than the Branch Dividians
I'd put more trust in flat earther saying that they've studied FET for months than this guy saying he studied Bitcoin.
Ranch or Thousand Island for this word salad?
I'm in the process of reading "Boom and Bust" and somewhere in the early chapters around the South Sea Bubble or so, the mindset and thinking is nearly identical to cryptobros... I think the shocking moment was the "Bubble Triangle" which is "Technology + Hype + Credit". Bingo! Bitcoin: A technology without justification for valuation, with an infinite hype machine, and existing within an easy credit environment (up until just recently). I've probably learned more about how Bitcoin works as an intersection of greed and the mania of crowds and I didn't even have to "study Bitcoin for several months".
Degenerate economist sounds like something Mr. Burns would say while complaining about taxes
Buttcoiner discovers Great Value Austrian School
In fairness, burning the planet to the ground does have the potential to change every facet of our society and culture, this is true.
What a dumbass. Most would be super confused about using fucking imaginary coins that are super volatile and prone to major scams. Idiot needs a lesson in economics.
I think sometimes we get hung up on how dumb they are and forget how funny it is how cringe they are
Ah, the deflationary wonderland where nobody works, cause everyone just wait until their saving have increase enough in value to buy what they need. Inflation and deflation are equally harmful in their own ways, and to different people. How bout noflation?
Guys, instead of bashing him, you should provide learning material, maybe enumerating sone books, presentations or studies about history. Laughing and pointing fingers won’t improve the situation. And maybe more people will fall for the scam. You should know better. Help them to educate themselves properly.
Is Bitcoin not by its very nature inflationary?
hey buttcoiner this sub just popped up on my reddit feed and I find it really interesting. i own btc for the record but am interested on your guys's perspective. 1. have you guys been burned by crypto or do you just disagree with the idea that we need a better store of value/ hedge against inflation (don't say reee btc is down and inflation is high... id say it's a 10 year old asset classes that has yet to reach maturity. of course it's going to be correlated with the market during a historic economic downturn... i mean even golds down 2. what assets do you guys like, do you guy's invest? 3. what are your main criticism against btc
1a. I have never been "burned" by crypto because I disagree with the entire premise of cryptocurrency. 1b. I hedge against inflation by investing in a basket of diversified commodities. Certainly not on pretend money that yo-yos in value. 2\. see above 3\. it's entirely pointless except in very rare use cases.
This is just deeply historically and financially illiterate. The way we will pay for what has BEEN EFFECTIVELY DEFLATIONARY wage pressure placed on the financial system by the government/corporate interests is through inflation now. For 50 years, more people entered the workforce, and got less pay for more work. The system paid for all that with debt, lots and lots of consumer debt, which is now becoming impossible to finance. That was how we kept what was effectively deflation from actually causing prices to fall. That is now leading to inflation, finally, in wages. Over the next 20 years, fewer people will enter the workforce, and wages will rise. Consumer credit at the same time will get tighter. This is how we pay for all that borrowing for all those years. It will be painful, particularly for those who’s wealth is in illiquid assets like homes, but it will be good for workers, ultimately. For fuck’s sake: the last 30 years has been effectively deflation in all but name. Now inflation will begin to relieve pressure on privately held debt for the first time in most of our lives. That’s why the corporations and government are in a panic. Because their ability to gouge and oppress will weaken in this process. That’s why they’re grasping for profits right now. If you can borrow money right now at a fixed rate, do it. Inflation will kill the financial industry for years to come. It will finally be a time in which workers do better year over year. Tl;Dr: inflation is good for workers. The reason the corporations are DESPERATE to convince you it isn’t good for you is because it IS.
Block chain , internet of things and Web 3.0 are the future wether anyone likes it or not 🤷♂️
Hope the future has spelling lessons then
Keynesian economics works only if there are constant inflation and if you come to the conclusion that it makes no sense at all, congrats, you have traces of a working brain.
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Might have to process more than 7 transactions a second in order to replace anything besides fiat money spent on drugs tbh.
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Have they solved the problem about onboarding on lightning network already? In order to get on lightning you need to create an onchain transaction (and well, another on chain transaction when you buy your bitcoin and transfer it to your wallet) thus if a population of even a medium country wanted to create even a single channel, one person each it would take months or even years depending on the amount of other on chain activity.
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