hajisatoshi on Nostr: # 11: Bitcoin & the Business Cycle — Austrian Theory of Malinvestment 💡 Key ...
# 11: Bitcoin & the Business Cycle — Austrian Theory of Malinvestment
💡 Key Idea: Bitcoin’s immutable monetary policy (no arbitrary interest rates, no inflation) could curb the boom-bust cycles fueled by central bank manipulation — a core tenet of the Austrian Business Cycle Theory (ABCT).
🌍 Real-World Example:
The 2008 housing crash epitomized malinvestment: artificially low rates (set by the Fed) incentivized reckless lending, creating a bubble in subprime mortgages. When rates rose, the bubble burst. Bitcoin, with its fixed supply and apolitical issuance, removes this lever of distortion, forcing markets to price risk without cheap credit crutches.
📜 Austrian Connection: Ludwig von Mises warned that central banks “misdirect production” by suppressing rates, creating fake booms (e.g., tech bubbles, empty condos). Bitcoin’s disinflationary design (halvings, 21M cap) denies planners this power, aligning money with real savings, not credit expansion.
⚡ Why It Matters: Malinvestment destroys wealth and jobs. Bitcoin’s hard money discipline could reduce speculative frenzies and foster sustainable growth — where investments reflect true consumer demand, not central bank whims.
🔍 Food for Thought: If ABCT blames fiat for cycles of waste and crisis, could Bitcoin’s neutral money act as a “therapy” for economies addicted to cheap debt?
Engage below! 🗨️
#Bitcoin #AustrianEconomics #BusinessCycle #Malinvestment
Published at
2025-02-15 23:03:14Event JSON
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"content": " \n# 11: Bitcoin \u0026 the Business Cycle — Austrian Theory of Malinvestment\n\n💡 Key Idea: Bitcoin’s immutable monetary policy (no arbitrary interest rates, no inflation) could curb the boom-bust cycles fueled by central bank manipulation — a core tenet of the Austrian Business Cycle Theory (ABCT). \n\n🌍 Real-World Example: \nThe 2008 housing crash epitomized malinvestment: artificially low rates (set by the Fed) incentivized reckless lending, creating a bubble in subprime mortgages. When rates rose, the bubble burst. Bitcoin, with its fixed supply and apolitical issuance, removes this lever of distortion, forcing markets to price risk without cheap credit crutches. \n\n📜 Austrian Connection: Ludwig von Mises warned that central banks “misdirect production” by suppressing rates, creating fake booms (e.g., tech bubbles, empty condos). Bitcoin’s disinflationary design (halvings, 21M cap) denies planners this power, aligning money with real savings, not credit expansion. \n\n⚡ Why It Matters: Malinvestment destroys wealth and jobs. Bitcoin’s hard money discipline could reduce speculative frenzies and foster sustainable growth — where investments reflect true consumer demand, not central bank whims. \n\n🔍 Food for Thought: If ABCT blames fiat for cycles of waste and crisis, could Bitcoin’s neutral money act as a “therapy” for economies addicted to cheap debt? \n\nEngage below! 🗨️ \n\n#Bitcoin #AustrianEconomics #BusinessCycle #Malinvestment ",
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