Why Most Economists Hate Bitcoin

funny thing is bitcoin is NOT even deflationary, it's INFLATIONARY with decreasing inflation rate. And even That triggers those keynesians. the definition of inflation is an increase in the supply of money, and deflation the opposite, defined by mieses in his <The Theory of Money and Credit>. Amazing how those terms slowly changes their meaning as the greatest achievements of our economist

"Inflation is the one form of taxation that can be imposed without legislation." ~ Milton Friedman

Where is this place when the sun always seems to shine?! Munich is beginning to feel colder and colder, surely the snow is not far away now.

Hey Heidi.. I am a follower of your channel so I can appreciate this off the cuff style video. But for someone new to the channel.. it may be a bit of a turnoff. It comes off as like you are just rambling and unsure about your topic. Which I know is not the case as I am a fan and a follower. But like, I wouldn't be sharing this with friends that are new to crypto or introducing them to your channel. As it would give the the wrong first impression of you..I hope you see this for what it is…constructive feedback. Otherwise..love your work … please keep doing what you are doing 🙂

Hi Heidi , you should look in to apollo currency , great blockchain with the introduction of the hermes 1.0 . 100% privacy coin , in my opinion the future of crypto

Inflation absolutely is not good for any medium of Exchange the only reason why people will take fiat currency that is inflating is because they're doing so at the end of a gun.

To exchange things of value for something that loses value is fundamentally antithetical to the whole idea of trade.

People and Economist in general had become well too comfortable with the notion of fiat currency

Solid! Salute

Your beauty is mesmerizing.

hi thanks for your videos.. much appreciated, could you please help me with something, i have free airdrop coins pundi x npxs, i can see them in my distribution page , user centre on bianance exchange but how the hell you confirm reciept ?? so they go onto your balance/ i dont know , it doesnt tell you that bit ? can you help please guide me to confirm reciept the free airdrop npxs how to do it? really would appreciate your answer thanks inadvance ! btw love your videos …

ETN all day. U better have some.

A single currency to rule them all.

Wow. You are so beautiful that you can hodl me anytime.

"The current inflationary system provides liquidity in the economy." It sounded familiar. Bakkt CEO Loeffler said something similar. She has the same plans for Bitcoin, which probably means that all these suits from Wall St are planning to create billions of new digital receipts which supposedly represent Bitcoin. Buying, selling, investing or using Bitcoin which is "bakkt" and insured by any of the Wall St institutions represents an existential threat for BTC (or more precisely, just its price). BITCONE FOR EVERYONE! The government is given too much credit for supposedly printing dollars. IMHO that is very 1930s way of looking at the problem. The government surely plays a role by allowing all this shenanigans to go on but the architects are the CEOs of these huge private companies. Now they are very interested in BTC. How can this end well? Thoughts?

I HATE to say this. Youtube needs more CHICKS teaching crypto. ?

Great points! I think a lot of how the miners and block producers are compensated are also a factor in if it's inflationary or deflationary.

Let's say Bitcoins value continues to grow over time and 1 bitcoin becomes worth 1 million dollars, for example. What will the dollar be worth by then? Does Bitcoins success depend on failure of the dollar? Then you might still only be able to buy a loaf of bread with 1 million dollars… Just wondering.

R U serious? Complaining about movies being $30! Your travel expenses this year alone are most likely near $50,000 or more.?

Love this one! thanks girl ?

Even if there were only 21 btc in the universe their value mean nothing if nobody demanded them.

Know why? Cause their smart enough to know investing in crypto is just throwing your money away, and a waste of time. At least you’ll have utube for some income. Bitcoin? Lol!

Have you done anything on algorithmic derivative manipulation on cryptocurrencies? I have.

We get it…now to explain this to the other 97% of the population. Even the hodlers need a re-fresher. Mahalo CT.

Yeah, inflation been on my mind recently since these guys are talking about an emerging market currency crisis.

Just like that one day you wake up and all of a sudden your money isn't worth jack

It's a crime really

hello!!! its beatiful where you did the video? Where is it?

I remember when bitcoin was decentralized…..the good ol days ! Lol hahahaha

Thanks Heidi. Great work. You make me happy ?

EOS has a 3% yearly inflation and ETH is static at 3ETH per block (2ETH soon, cause a few programmers decided that). two good examples to explain this aspect of each currency.

Monero is inflationary, people hold it for specific reasons, therefore holding inflationary as a store of value or long term is tricky and different to each specific coin

I am loving that you are covering these topics, most people think of crypto purely as trading vehiecles. However wish you could explain more about the economic schools and also maybe some basic digital graphs.

So I was wondering, if all 21 million bitcoins are minded. Why should the miners keep up the network? The fees must skyrocket for them to make any profit then?

Milton Friedman is controversial. He's embraced on the staunch Right, not so much elsewhere. Google for "Milton Friedman: a study in failure" published on The Guardian website.

Thanks for the book tips! There could be another segment of your show. Crypto book reviews. Great stuff!

Economists of the Austrian School don't hate Bitcoin 😉

I m youtube expert and promote the video on Reddit if you need my service please lets me us

Hey Heidi, great to see you diving into this topic. It’s pretty important to figure out how an economy works after all, especially because a lot of the proposed ‘smart economies’ aren’t flourishing that well at this moment!

I’m not sure if I agree with all the points you’re making here though. I’m not so sure if most economists don’t like bitcoin, and if they don’t if it’s because the deflationary aspect of the coin.

You’re right in the fact that a deflationary system makes for a great store of value, while an inflationary system incentises spending/investing. Both are needed for an economy in order to prosper, i believe. However, even gold has to deal with inflation as gold is still dug out of the ground. Still it makes for a good store of value, because the amount that’s dug up every year is relatively stable. I feel the problem with the fiat system is that fiat is created out of debt, which leads to exponential inflation. It’s the exponential part which make this debt-based system ultimately uncontrolable as more and more debt must be created to avoid a financial collapse. My guess would be that economists who hate btc, do this because they would see it as a threat to the survival of the current financial system.

Good luck with the upcoming vids, I always enjoy them (and a bit jealous of those beautifull locations!)

Take care,
Nick

Agreed , inflation keeps going up and up, which does prove the current system is just not working, look at Venezula, Iran, etc just so many examples that times next to change, but problem the powers that be just dont seem to learn or care of what is happening. at end of they day they still get to eat steak for breakfast, lunch , dinner and drive a lambo in bumper to bumper traffic, anyways really good points made, i enjoyed the video, sincerely JR of Exciting World Cryptos

Heidi is a crypto Gangsta. Another good one young lady!

You look like you have a cold cutie. Since you travel so much we can just have our honeymoon here in the U.S. you know for a change. I am serious about this next thing. Start another channel in addition to this. Make your own website. Start a site of your own online . Could use a pen name or just a site name.

<3

just enjoy the view …u must have had a good beer lunch but was fun

Deflation from debt collapsing is very different that the deflationary environment called the belle epoch when we were on gold standard. We had economic growth, broad increase in standard of living during defation.

Great video. One of the items you didn't mention about inflation is how it creates an environment where having debt becomes advantageous and necessary. If I can have money now and pay it back in 10 years with money that is worth less (or worthless), then that puts me at an advantage economically, but also puts me in perpetual debt (not so good).

Hot! I mean the topic. 😉

What none of these so called economist graps is that deflation is the money-endgame and the nash equilibrium, because crypto hit the space. Before crypto we had deflationary assets, but none of these assets were well suited for money. The reason is people tend to converge to deflationary assets and once there are no people who want inflationary assets, people have to spend also their deflationary assets in order to transact, because there are simply no accepted inflationary asset anymore. So the argument, that the econonmy would not work simply does not hold. This is of course only true in a free society, were people are allowed to make their own decisions. We do not live in a free society.

The generic ideal endgame is probably no money at all.

Most economist say you need inflation simply, because the current system is so dramatically intrinsically flawed, that you need growth of the so called "economy" or the system collapses. This is probably true, but this does not mean, that inflation is a necessary argument, it means, that we need another system. We need a system were permanent growth is not required for the system to run. And when it does not run anymore, we all know what happens to people in these countries. The first thing that should be done is stop fractional reserve lending. In some countries there were proposals, but none of them went through.

The current system is deliberate dispossession. Think about it you save something for your pension and they inflate it over 40 years, which means banks and politics deliberate expropriate you. And not only that there are also some other factors in play which may devalue your savings even more…

The problem is, that this is all very well known, but there is no incentive for the people in charge to change, because nowadays we have an unfair inflation and they defend their inflation, because it makes them richer and richer (and not just by a little bit, 2% every year is a humongous sum) and they simply know that they are not in danger at all regardless of what they do.

Thanks Heidi.

I always viewed Bitcoin as a store of value before that fantastic explanation you gave on this video. It’s too volatile for a currency, that’s just my opinion. Heck it appears very difficult to mine now, I can only imagine how difficult it will be to mine 10-20 years from now. My issue with the altcoins, with the exception of a few, like Ethereum, is they have some many outstanding coins, sheesh! I rather take my chance with Bitcoin.

3:08 Milton Friedman (little mistake)

most economists are an absolute joke. Just line up what they're saying to the history and present becoming history, they suck at it big time. Only progressive economists got a handle on a healthy economy long-term and don't need to lie.