Timeline for If Bitcoin becomes a globally accepted store of value, would it be liable to the same problems that mired the gold standard?
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| Feb 23, 2021 at 21:34 | comment | added | 1muflon1♦ | Hi, welcome to Economics:Stack Exchange. Please consider improving the answer by adding references from reputable sources. As many other science stacks we encourage links to external sources. See our help center. | |
| Feb 20, 2021 at 1:10 | comment | added | paulj | @KevinWells but he will never be able to print billions of more bitcoin making my bitcoin worth ever less. | |
| Feb 17, 2021 at 20:26 | comment | added | Kevin | @paulj Yes, wealth inequality and generational wealth can be problems with almost any economic system, but bitcoin is particularly susceptible because there are a small number of people who hold a huge amount of it because of their early adoption of it. Nakamoto is believed to hold around a million bitcoins, which is already worth tens of billions of dollars currently, if bitcoin became a currency standard its price could increase by orders of magnitude, which would make him potentially the richest person to ever live. He would then have unprecedented power of the global economy all by himself | |
| Feb 17, 2021 at 19:18 | comment | added | paulj | @KevinWells as opposed to being one who can get the fiat money early through state largess before its inflation affects are felt as this early money trickles through the economy. Boom/bust and malinvestments. | |
| Feb 16, 2021 at 21:46 | comment | added | user4574 | Couldn't the liquidity problems be solved in part by governments simply hoarding a lot of coins most of the time and then just releasing them when needed. The coins being out of circulation makes them effectively non existent. And then releasing them into circulation has the same effect as printing new money. The major difference is that they can't print without limit like they can now. | |
| Feb 15, 2021 at 22:47 | comment | added | Kevin | Yes, if this actually happened it would make the people who currently hold large amounts of bitcoin even more wealthy and powerful. There are currently whales that hold billions of dollars worth of bitcoin and that would go up by orders of magnitude if a large economy completely switched to using it as their currency | |
| Feb 15, 2021 at 20:21 | review | First posts | |||
| Feb 26, 2021 at 19:42 | |||||
| Feb 15, 2021 at 20:17 | history | answered | raul67 | CC BY-SA 4.0 |