Read on Twitter
In 1734, Richard Cantillon— the most important economist you've never heard of, was mysteriously murdered and his house set ablaze.
286 years later, his work explains why taxpayers get $600 while corporations get billions.
Here's Cantillon Effect, Inequality, and Bitcoin
286 years later, his work explains why taxpayers get $600 while corporations get billions.
Here's Cantillon Effect, Inequality, and Bitcoin
Cantillon's seminal work was published 20 yrs after his death and influenced world-renowned economists such as Adam Smith.
It lays the basis for inflation, production/consumption, international trade, business cycles, and more.
The most important concept: The Cantillon Effect
It lays the basis for inflation, production/consumption, international trade, business cycles, and more.
The most important concept: The Cantillon Effect
Cantillon Effect: when money is created, it doesn't affect all areas of the economic spectrum equally.
Translate to 2020: when the Federal Reserve prints money, it doesn't benefit the average person the same way that it benefits wealthy people, banks, and corporations.
Translate to 2020: when the Federal Reserve prints money, it doesn't benefit the average person the same way that it benefits wealthy people, banks, and corporations.
This is because the entry point of money is via the central banks, which work with the government to decide where new money goes.
Naturally, the bureaucrats, bankers, and corporations that wield leverage over the state enjoy this money first and benefit first.
Naturally, the bureaucrats, bankers, and corporations that wield leverage over the state enjoy this money first and benefit first.
Middle-class Americans are furthest away and benefit the least, if at all.
New money first hits the hands of the wealthy, and they buy assets like stocks, real estate, etc.
Inflation is first seen in asset prices— like we've seen this year across financial markets
New money first hits the hands of the wealthy, and they buy assets like stocks, real estate, etc.
Inflation is first seen in asset prices— like we've seen this year across financial markets
The economy slowly reacts to the increased total supply of money and consumer prices rise— making daily purchases more expensive.
Consumer prices are what the FED refers to when it says it's targeting inflation moderately above 2% for some time.
Consumer prices are what the FED refers to when it says it's targeting inflation moderately above 2% for some time.
Wages stay stagnant while groceries and necessities get more expensive.
The poor get poorer, while asset inflation makes the rich richer.
Creating new money under a fiat system increases wealth inequality.
The poor get poorer, while asset inflation makes the rich richer.
Creating new money under a fiat system increases wealth inequality.
Where does Bitcoin fit in?
Well, Bitcoin won't fix all wealth inequality or end poverty, but it's a much fairer system than what currently exists.
It has a fixed supply that can't arbitrarily be created or distributed. It's controlled by code, not self-serving politicians.
Well, Bitcoin won't fix all wealth inequality or end poverty, but it's a much fairer system than what currently exists.
It has a fixed supply that can't arbitrarily be created or distributed. It's controlled by code, not self-serving politicians.
The total supply of Bitcoin is fixed at 21 million Bitcoin, of which 18.6 million are in circulation.
Contrast this to the ever-increasing supply of US Dollars.
Because of this, Bitcoin is scarce— like gold. https://twitter.com/joinryze/status/1319288262398103555?s=20
Contrast this to the ever-increasing supply of US Dollars.
Because of this, Bitcoin is scarce— like gold. https://twitter.com/joinryze/status/1319288262398103555?s=20
New Bitcoin are released into circulation as a reward to miners— people and entities who use computers and electricity to secure the network and confirm transactions.
The rate at which new Bitcoin is created is predetermined by code.
https://medium.com/ryze-crypto-digest/the-bitcoin-halving-explained-d1dd1c7833f0#:~:text=The%20Halving%20occurs%20roughly%20every,the%20average%20global%20inflation%20rate.
The rate at which new Bitcoin is created is predetermined by code.
https://medium.com/ryze-crypto-digest/the-bitcoin-halving-explained-d1dd1c7833f0#:~:text=The%20Halving%20occurs%20roughly%20every,the%20average%20global%20inflation%20rate.
Satoshi's ingenuity allows new money to go to those providing the most useful service in the system: contributing power to keep the network secure.
Bitcoin severs the link between governments and the creation of money.
Bitcoin can mitigate the impacts of the Cantillon Effect.
Bitcoin severs the link between governments and the creation of money.
Bitcoin can mitigate the impacts of the Cantillon Effect.
As @wealth_theory said, "Bitcoin can do to central banks what democracy did to monarchies. Decentralize power."
The best way to protect your savings from inflation and the unfair, unequal distribution of new money is to opt-out of that monetary system. https://twitter.com/Wealth_Theory/status/1341899828624826368?s=20
The best way to protect your savings from inflation and the unfair, unequal distribution of new money is to opt-out of that monetary system. https://twitter.com/Wealth_Theory/status/1341899828624826368?s=20
More and more people and institutions are buying into Bitcoin because of its ability to fundamentally change the way we think about value and money.
But less than 0.5% of the world owns Bitcoin— it's not too late to be early.
Get started here: http://joinryze.com
But less than 0.5% of the world owns Bitcoin— it's not too late to be early.
Get started here: http://joinryze.com
