What Bitcoin Did BITCOIN & THE MONETARY REVOLUTION w/ Josh Hendrickson & William Luther
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Mar 6, 2025 Join economists Josh Hendrickson, a professor and chair at the University of Mississippi, and William Luther, an associate professor at Florida Atlantic University, as they dissect the misconceptions surrounding Bitcoin. They discuss how mainstream economists struggle to embrace cryptocurrency, and critique the vulnerabilities of fiat money. The conversation dives into Gresham's Law, the potential shift to a Bitcoin standard, and the future dynamics of money in unstable economies. Expect a lively exploration of trust, complexity, and the evolving landscape of economic thought!
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Why Economists Misunderstand Bitcoin
- Many economists misunderstand Bitcoin because they aren't monetary economists and don't focus on monetary systems.
- A US bias contributes to this misunderstanding, as the dollar's dominance makes Bitcoin's purpose less obvious.
Naive Empiricism in Economics
- Modern economics overemphasizes statistics, neglecting human behavior.
- This naive empiricism detaches from economic theory and history, hindering true understanding.
Fiat Money as a Bubble
- Fiat money, like a bubble, has two equilibrium states: positive value and worthlessness.
- The positive value equilibrium is unstable and shocks can lead to hyperinflation or worthlessness.