23 ms·

There is no federal agency or corporation that can inflate Bitcoin like Argentina's central bank has been doing. This is the major cause of inflation.

• epolanski 3y ago
  Currency was inflated to avoid defaulting on payments on debt. So again, this is really a symptom of a deeper problem.
  • 7thaccount 3y ago
    Regardless, you can't print more Bitcoin. With regards to out of control spending, I think Milei is trying to get that under control. No idea if it'll work though.
    • littlestymaar 3y ago
      People are usually being hurt harder by deflation than by inflation though, and it's demonstrably the best way to get overthrown (which usually doesn't happen with inflation) by a lunatic dictator. (Weimar Republic gets a bad rap for its hyperinflation period, but it survived it, and in the end that's Brüning's *deflation* in 1930-32 that caused the eventual demise of the republic and the birth of the 3rd Reich). The kind of intermediate-level inflation (not tour typical inflation, but also not hyperinflation) that exists in Argentina (or Turkey for that matter) is typically caused by governments addressing underlying problems by driving inflation up (it's not an unintended consequence of poor monetary policy, they aren't oblivious). Sure it's not nice, but the problem is: how do you solve the underlying problem anyway. If you just say “I'm gonna play the "strong money" card no matter what” you're not solving the problem, you're tying your own hands and now you have two problems. Be careful what you wish for.
      • 7thaccount 3y ago
        Agreed that deflation is scary and things can spiral out of control. Just hyperinflating forever though seems to just be making the pop of the bubble that much worse.
    • pjc50 3y ago
      You can however still default on debt in Bitcoin. I wonder how that's supposed to work.