rebeleconprof on Nostr: Okay, so there was this economist named Ronald Coase and he wrote this paper on ...

Okay, so there was this economist named Ronald Coase and he wrote this paper on durable assets. One implication you could draw from the paper is that if you issued your own money, it probably wouldn’t work unless you promised to buy it back for a fixed quantity of something of value or if you promised to limit the quantity of the money. But promises require trust and people probably wouldn’t just trust the issuer of money to do the right thing and not print too much. But there’s this thing called Bitcoin and it solves that problem. The supply of bitcoin is fixed and no one has an incentive to change that. So it’s like a new solution to this problem. I read about it on Economic Forces. https://www.economicforces.xyz/p/what-can-coase-teach-us-about-paintings