hajisatoshi on Nostr: Day 4: The Cantillon Effect vs. Bitcoin’s Permissionless Access 💡 Key Idea: ...
Day 4: The Cantillon Effect vs. Bitcoin’s Permissionless Access
💡 Key Idea: Bitcoin neutralizes the Cantillon Effect — where money printing enriches elites first and impoverishes the masses — by offering open, equal access to a monetary system free from gatekeepers.
🌍 Real-World Example:
During COVID-19, the U.S. Federal Reserve printed $4.5 trillion. Banks, corporations, and asset holders (stocks, real estate) saw their wealth surge, while everyday savers watched inflation erode their cash. By 2022, U.S. inflation hit 9.1% — a 40-year high — while wages lagged. Result: The rich got richer; the poor paid the price via rising costs.
🔗 Bitcoin Contrast:
When Bitcoin’s supply grows (via mining), new coins enter the market through open competition — miners earn BTC by securing the network, then sell to cover costs, distributing coins to buyers globally. No one gets “first access” privileges. A Venezuelan miner and a New York investor play by the same rules.
📜 Austrian Connection: Richard Cantillon’s 18th-century insight — that money printing distorts economies by rewarding insiders — was echoed by Rothbard: “Inflation is the opium of the masses… until the hangover.” Bitcoin’s code ensures no central party can rig the game.
⚡ Why It Matters: The Cantillon Effect fuels wealth gaps and social tension. Bitcoin’s fairness offers an alternative: a system where money’s creation and distribution are transparent, neutral, and accessible to all.
🔍 Food for Thought: If central banks keep bailing out elites during crises (2008, 2020, next?), could Bitcoin’s permissionless design finally break this cycle of exploitation?
🚀 Next Up: Day 5 — “Bitcoin’s Spontaneous Order: Hayek’s ‘Free Market Money’ Realized.”
Engage below! 🗨️
#Bitcoin #AustrianEconomics #CantillonEffect
💡 Key Idea: Bitcoin neutralizes the Cantillon Effect — where money printing enriches elites first and impoverishes the masses — by offering open, equal access to a monetary system free from gatekeepers.
🌍 Real-World Example:
During COVID-19, the U.S. Federal Reserve printed $4.5 trillion. Banks, corporations, and asset holders (stocks, real estate) saw their wealth surge, while everyday savers watched inflation erode their cash. By 2022, U.S. inflation hit 9.1% — a 40-year high — while wages lagged. Result: The rich got richer; the poor paid the price via rising costs.
🔗 Bitcoin Contrast:
When Bitcoin’s supply grows (via mining), new coins enter the market through open competition — miners earn BTC by securing the network, then sell to cover costs, distributing coins to buyers globally. No one gets “first access” privileges. A Venezuelan miner and a New York investor play by the same rules.
📜 Austrian Connection: Richard Cantillon’s 18th-century insight — that money printing distorts economies by rewarding insiders — was echoed by Rothbard: “Inflation is the opium of the masses… until the hangover.” Bitcoin’s code ensures no central party can rig the game.
⚡ Why It Matters: The Cantillon Effect fuels wealth gaps and social tension. Bitcoin’s fairness offers an alternative: a system where money’s creation and distribution are transparent, neutral, and accessible to all.
🔍 Food for Thought: If central banks keep bailing out elites during crises (2008, 2020, next?), could Bitcoin’s permissionless design finally break this cycle of exploitation?
🚀 Next Up: Day 5 — “Bitcoin’s Spontaneous Order: Hayek’s ‘Free Market Money’ Realized.”
Engage below! 🗨️
#Bitcoin #AustrianEconomics #CantillonEffect