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I still don't think the environmental damage is the scariest part of cryptocurrencies since there are likely technological solutions. As even Douglas Adams trie

I still don't think the environmental damage is the scariest part of cryptocurrencies since there are likely technological solutions. As even Douglas Adams tried to warn, it's the deflation that is worrisome: https://benoitessiambre.com/specter.html https://benoitessiambre.com/specter.html

logicchains 5y ago
America was in a deflationary environment for much of the 1800s and GDP grew at faster rate than the 1900s, with smaller crashes (nothing as big as the Great Depression or the GFC). Anti-deflationary propaganda is just FUD funded by an entire industry heavily invested in the current system: https://mattstoller.substack.com/p/the-cantillon-effect-why-wall-street https://mattstoller.substack.com/p/the-cantillon-effect-why-...
- BenoitEssiambre 5y ago
  I gave you textbook macro about deflationary currencies and you gave me hand wavy talking points about the 1800s that are easily verified as lies https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression https://en.wikipedia.org/wiki/List_of_recessions_in_the_Unit.... But that doesn't even matter since that era's global financial system was too different to draw much parallels. In particular, asset prices weren't globally and instantly synchronized so financial crises were more regional. People still widely relied on barter instead of cash back then, ffs! As soon as the markets became global and connected enough in the early 1900s, gold became the memetic deflationary asset of the time and when it got intertwined enough with the financial system, went on to cause the great depression, fuel WWII etc. You provided an article about the unrelated Cantillon effect instead of deflation? Maybe you mean to meant to paste another link?
  - logicchains 5y ago
    The link you provided doesn't even mention the GDP effect of those recessions, but if you look it up you'll find that none had as severe an effect on GDP as the great depression. The Cantillon effect is how the financial industry profits from inflation in its current format, which you'd know if you read the link. This incentivises it to produce FUD against deflation.
    - BenoitEssiambre 5y ago
      Look at the "Business Activity" column. I'm not sure you are going to get great GDP figure for the 1800s however. You are really grasping at straws with the Cantillon effect. There are distribution effects with everything including inflation and deflation. Deflation however is the one that is widely known, for even a little of it, badly hurting the economy especially workers as few are investing in businesses that are productive and need workers because everyone is chasing tokens instead.

logicchains 5y ago

America was in a deflationary environment for much of the 1800s and GDP grew at faster rate than the 1900s, with smaller crashes (nothing as big as the Great Depression or the GFC). Anti-deflationary propaganda is just FUD funded by an entire industry heavily invested in the current system: https://mattstoller.substack.com/p/the-cantillon-effect-why-wall-street https://mattstoller.substack.com/p/the-cantillon-effect-why-...

BenoitEssiambre 5y ago
I gave you textbook macro about deflationary currencies and you gave me hand wavy talking points about the 1800s that are easily verified as lies https://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States#Free_Banking_Era_to_the_Great_Depression https://en.wikipedia.org/wiki/List_of_recessions_in_the_Unit.... But that doesn't even matter since that era's global financial system was too different to draw much parallels. In particular, asset prices weren't globally and instantly synchronized so financial crises were more regional. People still widely relied on barter instead of cash back then, ffs! As soon as the markets became global and connected enough in the early 1900s, gold became the memetic deflationary asset of the time and when it got intertwined enough with the financial system, went on to cause the great depression, fuel WWII etc. You provided an article about the unrelated Cantillon effect instead of deflation? Maybe you mean to meant to paste another link?
- logicchains 5y ago
  The link you provided doesn't even mention the GDP effect of those recessions, but if you look it up you'll find that none had as severe an effect on GDP as the great depression. The Cantillon effect is how the financial industry profits from inflation in its current format, which you'd know if you read the link. This incentivises it to produce FUD against deflation.
  - BenoitEssiambre 5y ago
    Look at the "Business Activity" column. I'm not sure you are going to get great GDP figure for the 1800s however. You are really grasping at straws with the Cantillon effect. There are distribution effects with everything including inflation and deflation. Deflation however is the one that is widely known, for even a little of it, badly hurting the economy especially workers as few are investing in businesses that are productive and need workers because everyone is chasing tokens instead.