MultiversX Tracker is Live!

Can Bitcoin support world economic growth?

Bitcoin Reddit

More / Bitcoin Reddit 116 Views

I know people do not like inflation and are tired of the oversupply of money. Our wealth (or more accurately saving) shrinks when there is too much money printed and circulated in the market. However, we must agree that financial policy and tools were and are an important motor for world economic growth. With the bank's Loan to deposit ratio, Banks loan out more money than they received, and people spend more money than they earned. We call it the multiplier effect. In a peer-to-peer payment world where there is no bank, and no multiplier, people tend to lock the bitcoin in their self-custody box or wallet. As bitcoin is peer-to-peer payment, Institutions can hardly make loans unless they supply some sort of fake token. When most bitcoins are locked, currency in circulation will be limited, and that would cause financial problems in the world. The economy would slow down or stop without its blood of currency. That happens in gold or silver currency times such as Song and Ming dynasties in China. In tough economic times, people only think about saving and protecting their treasury rather than spending on future income like we are doing now for home mortgages. When spending shrinks, the economy slows down. That's why most economists believe 2% or so inflation is healthy for the economy. Bitcoin needs to find some organic, healthy, and legal connections with growth-oriented financial mechanisms.

submitted by /u/dreamingexplorer
[link] [comments]
Get BONUS $200 for FREE!

You can get bonuses upto $100 FREE BONUS when you:
πŸ’° Install these recommended apps:
πŸ’² SocialGood - 100% Crypto Back on Everyday Shopping
πŸ’² xPortal - The DeFi For The Next Billion
πŸ’² CryptoTab Browser - Lightweight, fast, and ready to mine!
πŸ’° Register on these recommended exchanges:
🟑 Binance🟑 Bitfinex🟑 Bitmart🟑 Bittrex🟑 Bitget
🟑 CoinEx🟑 Crypto.com🟑 Gate.io🟑 Huobi🟑 Kucoin.



Comments