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So, half a million dollars to raise the demand for bitcoin, while, as ever, the supply remains roughly the same. Gosh, I wonder why governments like to maintai
by hessenwolf 12y ago
So, half a million dollars to raise the demand for bitcoin, while, as ever, the supply remains roughly the same.
Gosh, I wonder why governments like to maintain a flexible money supply?
I am not saying that that is the intention of the organisers. I am just postulating it as a thought experiment, on one of the downsides of having a fixed money supply.
Not that there are not also upsides. But there are also downsides.
- jzwinck 12y agoIf the supply of the currency were inflated to "print" money to give to MIT students, people would rightly protest. It would be a simple wealth transfer from the overall population of currency holders to a small group of students who are already some of the most highly advantaged people alive in the world today. One purpose of this project is clear: to promote Bitcoin (or cryptocurrencies generally). The value of Bitcoin is higher since this announcement was made, regardless of what the price is.
- baddox 12y agoThat's a tired old criticism of Bitcoin. The creators of Bitcoin are well aware that they're basing the currency on financial principles not accepted in mainstream economics.
- hessenwolf 12y agoIt might be old, but money supply is far, far from a tired issue, whether with respect to bit coin, or to fiat currency.