Hypothetically if the USA pegged the US dollar to Bitcoin how would economic growth continue. I am a huge Bitcoin proponent but looking at it from this lens puzzles me. Restricting the printing press would, in my opinion, slow economic growth significantly. What would the world look like after this? Are there opposing viewpoints?
The economy grows through productivity. The effect of money on the economy is just an illusion. The U.S. government pumped trillions of dollars into the economy over the last couple of years and the economy grew at a rapid pace, but now with inflation kicking in we are seeing that those gains were not real. Real wages (wages after accounting for inflation) are now falling.
My question for you is, why do you think that money printing is necessary for economic growth? The world experienced tremendous economic growth before fiat money was invented.
Hypothetically if the USA pegged the US dollar to Bitcoin how would economic growth continue.
I wonder for how long could they - hypothetically - keep an inflationary coin (value decreasing over time) pegged to a coin with finite supply (value cannot decrease over time).They simply devalue the dollar, as was done when there was a gold standard.
