4min chapter

The "What is Money?" Show cover image

Bitcoin and the Sanctity of 21M | The Twilight of Gold Series | Episode 2 (WiM130)

The "What is Money?" Show

CHAPTER

Is Money Supply Purely Status Psychology?

Once inflation expectations are widely held to be a negative, let's say e expect inflation, then it actually becomes a self fulfilling prophecy of sorts. People begin to sell the dollars or the fiot currency to hedge against the very inflation they are in anticipating - which creates the inflation. The increased cash holding actually dampens the effect of the inflation and allows it to go on for longer. But eventually, there's a psychological break at some point, right?

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