Earlier in the month, The European Central Bank published a paper In which the authors assert that Bitcoin’s existence could lead to the impoverishment of non-holders or latecomers.
The authors wrote that:
“Since Bitcoin does not increase the productive potential of the economy, the consequences of the assumed continued increase in value are essentially redistributive, i.e. the wealth effects on consumption of early Bitcoin holders can only come at the expense of consumption of the rest of society.”
Frank, a bitcoiner who is well known for his scathing comments about the currency, was among those to express their anger. Take… but isn’t this essentially what hyperbitcoinization is? If Bitcoin is the new money for the world, HODLers are the ones who will be the most successful. new wealthy elite While the Fiat Bag Holders would go bankrupt, right?
It is the first sentence of this quote that I find most important. I, along with many bitcoiners, think that Bitcoin is a real currency. You can also find out more about the following: Increase the economic potential. This is for several reasons but one of the most important ones is because it eliminates fiat currency. Cantillon effectThis is a major benefit to governments.
If it had been possible in 2009 to swap all fiat currency in the world for bitcoin so everyone received a representative share (thus no redistributive effects), that may arguably have been preferable… but the ECB economists would still They don’t understand the benefits of Bitcoin.
Satoshi had no option to exchange everyone’s fiat currency for bitcoin, even if Satoshi wanted to. It makes sense, then, that Satoshi launched this project in the manner he did. This allows anyone to use the superior money at any time that suits their risk appetite.
The ECB’s economists may believe that there is a more efficient way of distributing this new money. I suggest they write a research paper using their Cantillon funded salaries. The following are some examples of how to use.
The article below is an overview of the topic. Take. Opinions are those of the individual author and may not reflect BTC Inc.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
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Source: bitcoinmagazine.com
