Marc De Mesel, 5:50 mark: “A deflationary currency works”
Your thoughts?
As far as I can tell he has zero formal economic training. Of course he has an incentive to say that deflationary currency works; he invested a ton in one.
Bitcoin won’t work as a currency as long as it’s so deflationary. Why spend bitcoins today when they might be worth much more tomorrow?
What Bitcoin really needs is a central bank to stabilize its value. When the demand for Bitcoin goes up, they need to print more to keep it from skyrocketing. That is, they need to decide whether they want Bitcoin to be a Ponzi scheme for techno-libertarians or an actual medium of exchange. See, the technology of Bitcoin really is revolutionary, but the currency of Bitcoin is holding it back. In other words, Bitcoin really could have use as a payments system if it had a stable value. But it doesn’t, so it’s just a dotcom stock. And one that could be co-opted by banks that take its technology and use it with dollars instead.
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Agree, a very deflationary currency is so bad that it cann’t be currency at all. If you use BTC to buy sth, that’s barter transaction.
Satoshi, a cryptographic expert, never be a good economist.Till now, 99.9% cryptos have shitty economics model, including BTC.
Actually, the Pandora’s box was ready in 1976, “Denationalization of Money”, now we have the Key, blockchain technology. Let’s open that box, and enjoy the magnificent scenery.