Building the crypto economy with declining inflation
The True Meaning of Bitcoin Halvening
Like it or not, Bitcoin is here to stay. And it looks like the crypto economy created by Bitcoin will eventually take over and replace the fiat economy.
Temporary — or rather natural — inflation can have its merits, contrary to what the proponents of sound money often claim.
For instance, the American Gold Rush was a period of higher inflation in the supply of gold. Yes, the increased output devalued the existing stock, but only temporarily until the economy caught up with it, and at the same time it helped build the American West.
Every gold rush on history has had the same effect. They have funded an expansion or an advancement. Partially it has been at the expense of the holders of the existing stock.
But eventually, their effects have faded into the background of steady anticipated inflation, as if their jobs were done.
It was the same with the postwar fiat inflation before the gold standard was finally broken. It helped rebuild after the war, and had it stopped there, the current monetary system wouldn’t necessarily be on its death throes. But unfortunately, it…
