Topic: Continuous Printing Of Money Out Of Thin Air Has Never Being The Answer - page 3. (Read 488 times)

Those who are against this kind of financing model are the ones with huge amount of saving in their bank accounts of course they will feel like they are robbed. But for the less fortunate, they will gladly want to receive the funds to be distributed to them.

The current system I think is already collapsing and the time for the fairer system to emerge is probably today when everyone is suffering from this crisis. I think its not really Bitcoin but still an immutable blockchain of digital fiat.

Well, that somewhat undermines the whole idea behind it

Namely, that its future is set in stone, in a way. I've seen it a lot when people were bragging about its unchangeable, rock-solid nature like there are only 21M bitcoins to mine, reward halving coming about every 4 years, and so on. The issue of divisibility is technically irrelevant, that I agree with. However, it will become an intolerable pain in the ass economically if Bitcoin is to become a means of exchange. It won't but no one can stop from assuming that for the argument's sake

Um, yes? Ever heard of divisibility? Ever heard of layers on top?. Bitcoin is not static. Its future is not set in stone. The potential is there for it to become whatever people decide they need it to be

Do you think 21 million bitcoins can supply more than 8 billion people worldwide? Do you think bitcoin is truly valuable when there are events like Bitcoin halving or limited supply? all of that is just what Satoshi set out to control this decentralized market. This is a mechanism for those who like to manipulate and create new games without the law. Bitcoin should not be used for payment, it should only be used in decentralized markets.

It shouldn't cause a significant rise in inflation rates

First, it remains to be seen how this money gets into the economy. In early 2010's the Fed ran three rounds of quantitative easing, and somehow it didn't lead to a boost in inflation. Then, if this money takes place of the money which wasn't earned, it won't cause inflation. It is kind of accounting identity (if you know what it means)

On the other hand, the money is intended to support the consumer demand as otherwise the producers will be hurt terribly (that's why it is called an economic stimulus in the first place). As such, it is much worse than inflation. Indeed, it is still a short-term measure overall, but there are sound and pretty solid reasons behind it


Now come up with the stats how much wages have risen during this amount of time, just to keep things in perspective

Some may think that printing money is an internal matter of the US, which is partly true - but since the US economy is not something that can be separated from the world economy, the whole world is likely to feel the consequences of such actions. But the US is not an isolated example of such a policy, similar things are happening in the UK and the EU, although the amounts are much smaller, and citizens do not receive stimulus checks to their home addresses.

It is obvious that there are those who advocate this model of financing and those who are against it, but I think at least two things matter throughout the story : The first is that it is easiest to follow the line of least resistance (in this case printing money), and the second is that politicians are only politicians and not experts, so we cannot expect smart moves on their part. What they are doing today is likely to have consequences for future generations, but I think they can live with it - after all, no one lives forever and only history can judge them for their mistakes.

Cryptocurrency as Bitcoin can hardly become a solution on a global scale, such an idea does not fit into the current world order, and it would be foolish to expect any change in the near future on this issue. The world will continue to live by the old rules until the current system collapses completely, and then it is possible that a new, better and fairer system will emerge.

With continuous money printing, the world will be stuck in cycles of deep recession every decade

As a measure to curtail the household hardship instilled by the ongoing covid-19 pandemic, The United States has already pumped in $2 trillion into the public, and is currently proposing another $2.2 trillion bringing the number to more than $4 trillion. The chief cause of currency devaluation is excessive money printing by the Fed.

They print trillions out of thin air and render the value of the dollar worthless in the long run. For the records, the U.S dollar has already lost more than 96% of its value since 1913. If the same narrative was true for Bitcoin, you and I won’t probably be talking about Bitcoin, we would have counted our irredeemable losses and moved on.

With the possibility of deep inflation already knocking at the door, a commodity-backed currency or a full-scale adoption of cryptocurrency could be an answer to this continuous cycle of currency devaluation and economic meltdown. Now, the big question is, is there ever going to be a time when crypto will be fully embraced as legal tender on a global scale?