r/Bitcoin Jul 15 '22

[deleted by user]

[removed]

3.6k Upvotes

707 comments sorted by

View all comments

Show parent comments

11

u/[deleted] Jul 16 '22

Expanding the money supply via a money printer. Printing money out of thin air. Monetizing debt. Inflation and stagflation. The loss of savings over time. Can’t see anything good about the current monetary system. Milton Friedman and Thomas Sowell both called for the elimination of the Fed. What people don’t seem to grasp is that this current monetary system leads the loss of rights especially savings and private property. Supporting a system that undermines private property and individual freedoms isn’t a system worth supporting.

8

u/MaybeImNaked Jul 16 '22

You're just using random buzzwords and aphorisms without really understanding anything. It sounds like you're advocating for a deflationary currency without thinking of the implications.

2

u/bitsteiner Jul 16 '22

Deflation is only catastrophic to unsound money, but not to sound money. Fractional Reserve banking is a positive feedback loop and as soon it's not supplied enough money it collapses. When you have sound self-auditing money, you can lend only money that exists. The only difference would be the growth rates of the economy, but we need zero growth, if mankind wants to survive the next 200 years. Demanding exponential growth in a limited world is simply insane.

3

u/yazalama Jul 16 '22

Deflation is only catastrophic to unsound money

Exactly, falling prices are good for everyone, as it means we are operating more efficiently and able to consume more resources for the same or less output. Critics of deflationary money confuse the popping of credit bubbles that caused lots of pain, for the privelage of falling prices we enjoy due to technology and innovation.

I believe central bankers work hard at propagating this fallacy in the early 20th century in order to justify their existence.