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030 - Knut Svanholm: Seafaring, Praxeology & Bitcoin Spirituality

Free Cities Podcast

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The Importance of Microtransactions

As number goes up and becomes more valuable, it sort of removes the incentive for us to make all these small transactions. On a Bitcoin standard, you don't have as many transactions, but when you actually do a transaction, it gives you a good or a service of a higher quality. What's missing from that theory is that every time a $100 bill is used for good or service,. then that that good or service is added to the overall economy. And therefore, we need inflation to make that happen a lot of times. The velocity of money is a very Keynesian metric anyway.

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