Thank you for your thoughtful comments. I am very much in sympathy with your thoughts about inflation. What has occurred in Washington DC in the last 15 years since 2008 (Quantitative Easing, e.g., manufacturing “money” via debt) is the very definition of “inflation.”
It is certainly true that inflation steals from the savings of the thri…
Thank you for your thoughtful comments. I am very much in sympathy with your thoughts about inflation. What has occurred in Washington DC in the last 15 years since 2008 (Quantitative Easing, e.g., manufacturing “money” via debt) is the very definition of “inflation.”
It is certainly true that inflation steals from the savings of the thrifty and productive; the desperation savers feel about protecting their assets from this theft is highly understandable.
The question before us is whether cryptocurrency offers a solution to the problem of “fiat” currency. I myself think not, for one simple reason: instead of being subject to the whims of the political class as to expansion of the money supply, I would become subject to the whims of a mob of speculators untethered to anything but their baseless speculations about the future price of a cryptocurrency.
My personal distrust of cryptocurrency is of no persuasive value to anyone else. It would be better to look to someone with mathematical skills, investing sophistication, and experience who can address the various claims made for cryptocurrencies. It just so happens that such a person has written on this very subject. His name is Nassim Nicholas Taleb; he is the author of “The Black Swan” and “Fooled by Randomness.”
This paper is a bit technical, but well worth reading. Here is the technical publication:
Thank you for your thoughtful comments. I am very much in sympathy with your thoughts about inflation. What has occurred in Washington DC in the last 15 years since 2008 (Quantitative Easing, e.g., manufacturing “money” via debt) is the very definition of “inflation.”
It is certainly true that inflation steals from the savings of the thrifty and productive; the desperation savers feel about protecting their assets from this theft is highly understandable.
The question before us is whether cryptocurrency offers a solution to the problem of “fiat” currency. I myself think not, for one simple reason: instead of being subject to the whims of the political class as to expansion of the money supply, I would become subject to the whims of a mob of speculators untethered to anything but their baseless speculations about the future price of a cryptocurrency.
My personal distrust of cryptocurrency is of no persuasive value to anyone else. It would be better to look to someone with mathematical skills, investing sophistication, and experience who can address the various claims made for cryptocurrencies. It just so happens that such a person has written on this very subject. His name is Nassim Nicholas Taleb; he is the author of “The Black Swan” and “Fooled by Randomness.”
This paper is a bit technical, but well worth reading. Here is the technical publication:
“Bitcoin, Currencies, and Fragility” by Nassim Nicholas Taleb, available online at https://arxiv.org/abs/2106.14204
Taleb’s conclusions are also reported in plain English in several business-related magazines, viewable online.