This is more of an economics-related post, but links to Bitcoin as an idea. I hope this is allowed.
I have a very limited understanding of economics, but I thought of something recently. Einstein once said: "We can't solve problems by using the same kind of thinking we used when we created them". I think most people would agree with him.
But, when you look at monetary policy and its aims -- isn't it fundamentally going against this idea? Trying to fix inflation by messing with the money supply is using the same kind of thinking that actually created inflation. Printing money leads to inflation -- so you plan to decrease the amount of money to prevent inflation. There's not enough demand -- so you print money. Etc.
I suppose Bitcoin comes in, following through this idea, and actually providing, a new thinking. Namely, a mathematically engineered limit to the amount of money available. This seems more in line with what Einstein suggested. I suppose Bitcoin tries to use a new thinking so solve a problem -- not the same thinking.
Interestingly, this thinking links with another one of Einstein's more scientific ideas, that, no matter how much energy we put into a thing, it cannot travel faster than the speed of light. Similarly, with no matter how much energy you put into it, you can't create more than 21 million Bitcoins. Perhaps we need to accept the idea of limits, as a general principle.
I am not even suggesting that having a perfectly scarce money supply is ideal. But it seems more in line with what Einstein was saying than monetary policy.
Sorry for the shpiel ....
This post is also on BBS.market.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments