Larry White on Gold, Fiat, and Bitcoin: Determining the Ideal Monetary Standard
Macro Musings with David Beckworth
00:00
The Volatility of Bitcoin
In the short run, if you have sudden money-demand shocks, you're going to get really sharp deflation. For the longer run, there'd be a more gentle, predictable deflation that might even follow the Friedman rule. There are other possibilities that would dampen the volatility of demand for Bitcoin. The problem so far is that it's hard to create a Bitcoin bank with Bitcoin assets and Bitcoin liabilities when almost nobody wants to borrow in Bitcoin.
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