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444 sats \ 3 replies \ @grayruby 14 Nov 2023 \ on: Meta Econ Takeover Day 28 meta
Inelastic supply. "we need to be able to expand the money supply in times of crisis".
My response:
a) man made crises like wars and recessions will be a lot less prevalent. And when they do occur, you can still expand the money supply with debt issuance, but actually need to have a plan to pay it back now.
b) natural disasters and humanitarian crises will still occur and when they do occur, you can still expand the money supply with debt issuance, but actually need to have a plan to pay it back now.
I know it is contrary to what a lot of Bitcoiners believe but there will still be some degree of fractional reserve banking on a bitcoin standard.
People are going to create claims on bitcoin whether we like it or not.
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Agreed, on a BTC standard though (much like a "pure" gold standard might've been) trusted third parties will be incentivized to be good actors and make sound lending decisions since trust and reputation will actually count as things earned, not assumed.
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I like this one. It doesn't quite apply to the gold standard, since you could always mine more gold if prices went high enough (or low enough, I guess).
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