
Bitcoin Fixes This #72: The Fiat Standard with Saifedean Ammous
Bitcoin Fixes This
00:00
Cansians Fear Credit Collapse?
Inflation and deflation are two different things. In inflation, the value of money continues to decline in minal terms because it's no longer worth as much. Economic production does not lead to lowering of real prices even with all the inflation that happens. And if you issue credit backed by savings, then you're going to create business cycles which will cause rises in valuations but also collapse in prices. That's why cansians should not engage in this kind of inflationary boom-and-bust cycle. An insane inflation is just another symptom of the insane economy. It won't be a good thing for businesses when they start getting wiped out fromcredit bubbles.
Transcript
Play full episode