SimplifiedPrivacy.com on Nostr: Of course I think of the epic last line after I post it, If Hayek were alive today, ...
Of course I think of the epic last line after I post it,
If Hayek were alive today, he'd say "Not your keys, it's a shitcoin"
If Hayek were alive today, he'd say "Not your keys, it's a shitcoin"
quoting nevent1q…4mz8Before Bitcoin was officially released,
Friedrich Hayek warned of the dangers of custodial bitcoin wallets
In his book, he laid out the boom-bust credit cycle, which happens when banks create money through lending. For example you deposit $1, but they lend it out. Now you think you have $1, and so does that other guy.
Some hate altcoins, because they are just venture capitalists printing money out of bullshit. But what people should be more aware of, is that 90% of the US money supply comes from private banks doing fractional reserve lending. And this is far more dangerous than the measly Federal Reserve, because it creates malinvestment, that causes depression when it bursts.
When you use custodial bitcoin wallets, these are really fractional reserve bank accounts, and the very thing you hate, (printing money) is being done in a sinister new way....
Because the more volatility that comes from these credit busts, the less cryptocurrency will be used as real world money. Which causes capital flight on the "real" lightning liquidity, making it even harder to self-custody due to the cost of capital. You see, Bitcoin's enemy isn't altcoins, it's fake Bitcoin.
If Hayek were alive today, he'd say "Not your keys, not your economy"