sam on Nostr: It’s a superb insight from saifedean (as per usual!). However, the main point that ...

It’s a superb insight from saifedean (nprofile…vfu0) (as per usual!).

However, the main point that I think he’s addressing is whether bitcoin causes hyperinflation of fiat. And I agree with him that it doesn’t for the reasons he says. But what happens subsequently as credit demand falls is that the central bank needs to print more base money to avoid an overall fall in fiat prices (which a debt based money is not designed for). So the overall money supply still rises but the proportion of base money to credit money goes up. Eventually this leads to fiat hyperinflation. However, the existence of bitcoin has delayed the inevitable collapse and so allowed more people to escape it.