So we will have an expanding supply of bitcoin chasing a declining supply of real goods (because politicians have strangled our real economy). That sounds like bitcoins will be subject to about a 50% inflation. And then the electric power goes out.
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The current supply is almost 94 percent of the limit, 21 million. The current inflation rate is about 1.5 percent and will only get lower. This is not a surprise; it was programmed to behave this way.
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Does that imply that all those bitcoin miners are about to run out of business? There could be great deals on slightly used computer centers. 
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About 20 percent of all US dollar is dollar bills and coins. All other USD in the US are just digits on a computer. I actually question that 20 percent exists. If it does it is on pallets in vaults held by a few. Very few people have 1000 in cash on hand.
If the power goes off, none of the digital USD will be available. To use Bitcoin all you have to do is go to where the power is on. It may not be easy to get to Mexico or South America, but migrants by the millions made the trip the other way.
Electricity outage is a potential advantage of crypto. It is difficult to transport large amounts of cash physically and safely.
It takes a world wide failure for crypto to not be available.
It isn’t not possible to have a world wide blackout, but it is far more likely the blackout or any calamity is local.
Bitcoin isn’t a US thing. It is a world thing. Advantages that someone in Venezuela or more generally well over half the world thinks are important, the US resident doesn’t.
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“It takes a worldwide failure for crypto not to be available. .”
Um, yuh:exactly. And you don’t think THAT can be engineered?
So why aren’t we better off with de-centralized units of currency?
I reckon those would emerge anyway. I read that during the Great Depression, the U.S. just did not have much “money” (or do I mean “cash”?) think because we were still on the gold standard, and we didn’t have much gold So some cities printed their own scrip.
With regard to Trump, I agreed with his earlier position: cryptocurrency feels like a scam.
You re right, of course: all such systems depend on people’s faith in them, in people’s consensus as to value.
In the Trobriand Islands, per Malinowski, nothing ws more important than the Kula trade. Necklaces of white cowrie shells moved clockwise and bracelets of red cowrie shells moved counterclockwise around the islands. To be a big man, you had to try to accumulate as many as possible at a time, BUT you couldn’t get a rep as a hoarder, so you had to let them be circulated, or nobody would trade with you. Once assembled, these objects were treasures, extremely valuable—funny thing is, red and white cowrie shells littered the beaches, literally as common as dirt.
Here’s another thing that strikes me funny (yes, funny ha-ha) : what about “modern monetary theory”? I read the book about that by Stephanie Kelton, “The Deficit Myth: Modern Monetary Theory and the birth of the people’s Economy” a few years ago. The gist of that “theory” is that, as a sovereign currency issuer, the U.S. can print all the money it wants to, and it SHOULD: a sovereign currency issuer CAN’T go bankrupt because it can create unlimited supply. (Yeah well so was Germany, right?) but the main thing about MMT was that the supply of currency shouldn’t and needn’t be controlled; the main thing about cryptocurrency is that supply WILL always remain fixed.
So is bitcoin the nemesis of MMT?
I feel like a peasant gazing up at the clouds where a battle between two fierce gargantuan dragons is raging. Eventually, one of them will win; then the dead body of the loser will fall to earth and crush a lot of people—and the winner will descend to finish off the rest of us. But in the meantime, down in the villages we’ll go on buying and selling, spending and getting whatever we can agree is of value for the moment.
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MMT is a pack of lies, the author of that stupid book should have her degrees clawed back.
Anyone with common sense is the antithesis of MMT.
The goal of any central bank or government is a stable supply of money whether it’s a fixed amount or increase by fixed or predictable amount.
You’re right to be skeptical of new cryptocurrencies. Bitcoin has been around since January 3, 2009. What’s more important than bitcoin is understanding the theory behind its creation.
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When the power is not on – mass transit not running, gas stations unable to sell gas, airports not in service – getting to where the power is on may turn out to be a very long walk. Especially if the peon has one of those government-preferred electric vehicles.
But it is an excellent point that almost all of our commercial transactions are dependent on electric power – even today. I was once stranded for a day in a little town in West Texas because the internet in that area had failed, and transactions were impossible.
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We’ve agreed to be at the mercy of electrical power. And not only economically, but culturally: physical books being destroyed by our “libraries” in favor of online versions—even though everybody knows that means a text can be altered or even eliminated with a few keystrokes. “Electronic storage” is an oxymoron. But we go on doing it!
@Citizen_bitcoin , I’m happy to have my impression of MMT confirmed: yes it’s batshit crazy and I’m glad it’s not just I who think so! But OTOH haven’t we already had several 1929 type mass suicides among cryptocurrency investors?
@Mettelus , You may say, well, if it is no better than our current system, at least it is no worse. But I think it IS, because: global. It’s the Tower of Babel: look what happened last time all mankind decided to work together: God don’t LIKE that, it scares Him…
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Most miners go out of business or turn off their ASIC machines or repurpose them for Artificial Intelligence. Miners shutting off today have nothing to do with approaching the maximum limit. That limit won’t be reached until 2137.
In 1849 most gold miners and prospectors lost money. Only a few prospectors struck gold. Of course the biggest winner in 1849 was Levi Strauss who sold tents and clothing and other accessories to gold miners and prospectors.
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Once again, I doff my metaphorical hat to you, Hypatia. You are the only person I have come across who actually took the time to read that lady’s book. Most people seem to have taken the position that – in the immortal words of Monty Python – the concept was “too silly” to warrant spending the time.
Since you have read the book, did the author address the obvious issue of inflation? And if so how? Only if you have time to satisfy the curiosity of someone who has too many other more worthy books stacked up on the pile. Thanks.
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Tax increases fight inflation according to MMT
I didn’t read the book. The summary is sufficient for stupendously stupid ideas
Edit:
Based on the provided search results, here are some key criticisms of Modern Monetary Theory (MMT):
- Lack of mathematical model: Critics argue that MMT is not a true theory because it lacks a mathematical model associated with it, making it difficult to test or falsify. (Source: “Modern Monetary Theory: A Critique”)
- Naive and irresponsible: MMT has been called naive and irresponsible by critics, who argue that it ignores the potential consequences of unlimited government spending and money creation. (Source: “Modern Monetary Theory (MMT): Definition, History, and Principles”)
- Fiscal dominance: Critics argue that MMT’s emphasis on fiscal policy and disregard for monetary policy could lead to fiscal dominance, where the government’s ability to print money undermines the effectiveness of monetary policy. (Source: “Modern Monetary Theory: A Critique”)
- Inflation and debt: MMT’s rejection of the idea that government debt can cause inflation has been criticized as unrealistic and potentially harmful. Critics argue that unlimited government spending and money creation could lead to hyperinflation and debt crises. (Source: “The Weakness of Modern Monetary Theory”)
- Ignoring historical precedents: Critics point out that MMT’s claims about the effectiveness of government spending and money creation are not supported by historical examples, such as the experiences of Japan and Sri Lanka. (Source: “Modern monetary theory”)
- Overemphasis on government control: MMT’s focus on the government’s ability to control the money supply and economy has been criticized as overly optimistic and ignoring the role of private sector and market forces. (Source: “Modern Monetary Theory: A Critique”)
- Lack of consideration for international trade: Critics argue that MMT neglects the importance of international trade and the potential consequences of a country’s monetary policy on its exchange rates and trade balances. (Source: “Modern Monetary Theory: A Critique”)
- Ignoring the role of interest rates: MMT’s rejection of interest rates as a policy tool has been criticized as unrealistic, as interest rates play a crucial role in shaping the economy and influencing private sector decisions. (Source: “Modern Monetary Theory: A Critique”)
These criticisms highlight some of the key concerns and debates surrounding Modern Monetary Theory, including its theoretical foundations, policy implications, and potential consequences for the economy.
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Yes, and taxation is only a tool of social control—because again the govt doesn’t “need our money”, per Ms. Kelton. How could it “need” something it can produce in infinite amounts? (See, “Trade, Kula” discussed above. )
I have to say cryptocurrency seems just silly to me too. It’s a worldwide computer game with arbitrary rules. But I can’t just dismiss it, any more than I felt I could dismiss MMT, when so many smart people seemed to see sump’n in it. Remember: Kelton is a Sanders aide, and Sanders woulda been the Dem nominee in 2020 if the Dems hadn’t rigged it for Ol’Bygone. That’s why I read the book.
And about inflation, BFD! sez Ms. Kelton: what’s the diffy if we have to take 1$ bills or 100$ bills to the grocery store? Didn’t the French already do sump’n like this with the Franc, years ago? We’ll all just get used to the “nouvelle dollar”.
I have some very old paperback codices with prices like “59 cents” printed right on the bindings: that’s what they sold for new, can you imagine? ( And I note we no longer have the cent sign any more: that c with the line wouldn’t mean anything to most people these days.)
Feeling a tad better about Trump: apparently his point is that America can ‘dominate” the bitcoin market. I can’t call up his speech, and I don’t see how, really, since by its rules it’s independent of sovereign nations- — but I’ll take it on faith h for now: Trump is still AMERICA FIRST. M A G A!
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Trump wants every bitcoin mined in America. Obviously unrealistic but he wants Texas and other states with cheap and plentiful energy to attract bitcoin miners.
Contrast with Biden and Warren who want to punish and destroy bitcoin miners:
Yes, it’s just like with early voting: if that’s the game now, we have to play it too, and win at it. So okay. Trump, after all, is a polymath, too.
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Crypto-currencies can be the people’s money. It isn’t a collaboration to build something together. The only collaboration is an agreement between individuals and it requires no third party to agree or enforce the individual agreement.
I am not well versed in the bible. I thought that prior to trying to build the tower, the people all spoke the same language and were unified. They tried to build the tower to demonstrate their greatness. It was a demonstration of arrogance and pride. The problem wasn’t they were working together, it was the purpose or intent of working together was not righteous.
The US dollar is actually closer to the tower story. Bretton Woods was the world cooperating on using the US dollar as the world reserve currency. In 1959, Robert Triffin argued before the US Congress against such a system.
Below are his key points.
- Domestic vs. International Objectives: A country whose currency is the global reserve currency (e.g., the US dollar) must balance its domestic economic goals (e.g., low inflation, fiscal discipline) with the international demand for its currency as a store of value and medium of exchange.
- Supplying Reserves: To meet global demand, the reserve-issuing country must supply an increasing amount of its currency, leading to a trade deficit and potentially undermining its domestic economic stability.
- Eroding Confidence: As the supply of dollars grows, confidence in the currency’s convertibility to gold (under the Bretton Woods system) erodes, threatening the stability of the international monetary system.
- Inevitable Run on Gold: Triffin argued that eventually, foreign central banks would convert their dollar holdings to gold, leading to a run on US gold reserves and potentially triggering a crisis.
I think we have a BINGO.
The arrogance and pride involved with setting up and trying to maintain this global system was and is huge and the people of the US may find the same fate of those in Babel.
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Milton Friedman hated Bretton Woods for many reasons. One reason was fixed exchange rates instead of floating exchange rates. During the 1960s he thought the British pound was overvalued so he tried to short it. He called every currency exchange and trader to short the pound but no one would allow him to place that bet.
One of the problems of a gold standard is also fixed exchange rates.
Bretton Woods was a misguided attempt to create a pseudo gold standard.
Before he removed the connection between dollars and gold, Nixon told the coast guard and navy do not let the ship 
from France land. Send it back to de Gaulle.
The main reason for inflation today and the last 50 years is fractional reserve banking, which is inherently inflationary, another Milton Friedman quote.
I don’t understand economics and monetary policy. I plagiarize Milton Friedman. Why reinvent the wheel 
?
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In case you’re up interested, what God says in the Babel story when he sees the tower is:
“Behold, the people is one, and they have all one language, and this they begin to do: and now nothing will be restrained from them, which they have imagined to do.
Go to, let us go down, and there confound their language, that they may not understand one another’s speech”
— Gen 11: 6-7
So, the point I was making is, God wasn’t pleased with the one-world idea. If cryptocurrency is global, not tied in with any nation, I was analogizing to that.
As for the people being “proud”, daring to “try to get to Heaven by brick ‘n’ stone, ‘steada Walkin’ into Heaven by Grace alone” as a Sunday School ditty we used to sing has it- that really isn’t in there. I mean yes they were building a vertical, highest-ever tower, but the Bible doesn’t say they intended to besiege God’s domain.
And why would God care even if they were? I mean even today we don’t have any towers whose height exceeds the atmosphere. Why did it bother God that nothing man imagined would be restrained from us?
(You @Mettelus , obviously have a more sophisticated understanding of the phenomenon than I do; I’m not arguing with you about that. It’s just I can’t resist any opportunity to talk about OT stories! Carry on! I’ll keep an open mind.)
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The reason nobody read the book is because it is neither modern nor theory. It is the system that Weimar had in place and the system that Zimbabwe has in place.
If you pay attention to movies, you will notice that the left has very little ability to innovate. They simply recycle old ideas over and over with new character names, new terminology and new scenery.
In a functioning society, she nor her crack pot ideas would ever be brought up for fear of being laughed at.
A good sign that we are nearing the end. I don’t know if it is 5 years or 25, but it is obvious we are nearing the end.
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I guess this is as good a place as any to spill my rant about UBI.
All you need to know about UBI can be found on the Lakota Sioux reservation. They have been on UBI for generations. Many would like to claim the tragedy is because they are Native American. I claim it is due to UBI and it is a microcosm of what the US will look like if UBI is implemented. A complete destruction of ambition, self confidence and self worth.
Contrary to popular intellectual opinion, if you don’t have to contribute, most don’t decide to contribute at a higher level by spending their time inventing things.
If you haven’t been personal witness to the Lakota Sioux tragedy, maybe this will give you a flavor. My wife and a good friend of mine both had Native American friends in college. Both Native American’s said the same thing. I will not be welcomed back because I went to college. Once you destroy a whole communities self worth, they will act like lobsters trying to pull down anyone trying to improve themselves. UBI does the destroying.
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Kudos to your Native American college friends for escaping the reservation. Many have difficulty adjusting to life outside the reservation. Homesickness is understandable but it’s usually something more pathological than simply being homesick and missing your family and friends.
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