2197 sats \ 1 reply \ @peruvian_bull OP 26 Aug \ parent \ on: Peruvian Bull- Macro Writer AMA AMA
this is a really good question. difficult to answer, since i don't know what all other bitcoiners believe, even the most popular/influential ones.
the mind-blowing realization that really made bitcoin click for me was the epiphany that it solves Triffin's dilemma. Triffin's dilemma is an old paradox in macro economics was pointed out by an economist named Robert Triffn in the early 1960s in front of Congress, most of his work had been exploring the interlay of global reserve, currencies, and how they rise and fall, and he famously had predicted that the US dollar would lose reserve currency status because of the fundamental flaw in its design.
Essentially, global reserve currencies have demand outside of the issuer country, which creates a dilemma for the holder of the global reserve currency. They have to choose to either print and meet this demand or not. If they print, they must export more currency units than they import. They have to run trade deficits and print more than they otherwise would in order to keep the global economy running. If they don't do that, then he predicted that there would be a global deflationary crisis because there wouldn't be enough currency units going around to fund global trade be held as forex reserves or settle international payments.
However, this problem only exists for centrally issued currencies. Bitcoin completely breaks the dynamic by being a non-centrally issued currency, instead issued by a decentralized system, which means that it not only solves the dilemma it obviates the need for it ENTIRELY.
This makes bitcoin the perfect world reserve currency for the 21st-century and strips away the superpower hegemonic status of the USA or any other power who wants to rise and dominate the global financial system.
https://m.stacker.news/48334
Bretton Woods imposed a fixed exchange rate. How does the demand for dollars change when exchange rates float?
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