maiakee on Nostr: What is the Cantillon Effect? The Cantillon Effect explains how new money benefits ...
What is the Cantillon Effect?
The Cantillon Effect explains how new money benefits some groups at the expense of others. When money is printed, it enters the economy unevenly:
• Winners: Those close to the source (banks, corporations) spend it before prices rise.
• Losers: Regular people and savers face higher prices without getting the new money.
This distorts markets, worsens inequality, and leads to economic instability.
How Bitcoin Fixes the Cantillon Effect
Bitcoin eliminates the Cantillon Effect by:
1. Fixed Supply: No arbitrary money printing.
2. Decentralization: No privileged access to new money.
3. Transparency: Clear, unchangeable monetary rules.
4. Global Access: Everyone can use it equally.
5. Inflation Resistance: Protects purchasing power over time.
Bitcoin empowers individuals, removing unfair advantages and creating a more equitable financial system.
#siamstr #btc #bitcoin #nostr
Published at
2024-12-08 08:00:32Event JSON
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"content": "https://image.nostr.build/697a59e8e1b0587e6439f6a283d713e2bdf53aba5493cecb4f4768e2e0d41af6.jpg\n\nWhat is the Cantillon Effect?\n\nThe Cantillon Effect explains how new money benefits some groups at the expense of others. When money is printed, it enters the economy unevenly:\n\t•\tWinners: Those close to the source (banks, corporations) spend it before prices rise.\n\t•\tLosers: Regular people and savers face higher prices without getting the new money.\n\nThis distorts markets, worsens inequality, and leads to economic instability.\n\nHow Bitcoin Fixes the Cantillon Effect\n\nBitcoin eliminates the Cantillon Effect by:\n\t1.\tFixed Supply: No arbitrary money printing.\n\t2.\tDecentralization: No privileged access to new money.\n\t3.\tTransparency: Clear, unchangeable monetary rules.\n\t4.\tGlobal Access: Everyone can use it equally.\n\t5.\tInflation Resistance: Protects purchasing power over time.\n\nBitcoin empowers individuals, removing unfair advantages and creating a more equitable financial system.\n\n#siamstr #btc #bitcoin #nostr",
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