Thank you for reading and for your thoughtful response Tom.

Certainly, economics is a complex subject and it’s easy to confuse correlation with causation, I’m could be guilty of this. Was the growth in the last 50 years caused by soft money or despite it? We’ll never know. But we can all agree that increasing the money supply leads to inflation and that’s not good. This is the reason why governments try hard to keep it under 2%.

For the last 50 years industrialized economies have been able to maintain inflation under control despite using soft money. This was achieved by raising interest rates whenever the economy heated up. But now, we are in a difficult situation, interest rates are very low and the economy is in trouble, so raising them would be too risky. On top of that, unprecedented amounts of money are being printed. I’m no expert but, surely this could lead to hyperinflation.

According to Austrian economics, markets gravitate towards hard money. For millennia it was gold, for 50 years it was the dollar and now it’s bitcoin. Look at Venezuela, 20 years ago the hardest currency there was the Bolivar, then it was replaced by the dollar and now is being replaced by bitcoin (World’s 3rd in btc adoption)

Hard money is important, governments can’t be trusted, unlimited supply makes any asset go to zero, inflation is a silent thief. I think the world is slowly moving towards a Bitcoin Standard.

Cheers

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Author of ´Bitcoin For Mere Mortals´ available @Amazon. Subscribe and drop me a line and I’ll send you a copy for free, no strings attached.

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Alberto Guerrero

Alberto Guerrero

Author of ´Bitcoin For Mere Mortals´ available @Amazon. Subscribe and drop me a line and I’ll send you a copy for free, no strings attached.

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