SNBC - Intro to Bitcoin - Day 2
When money dies
Today you will explore some historical examples of when, how and why money 'died.'
Carl B Menger's article takes a detailed look at hyper-inflation in Weimar Germany and Zimbabwe as historical precedents for what may be going on today with the USD.
Secondly, Siggy47 provides some insight into how inflationary pressures actually play out in a commercial real estate business, putting the oft-scapgoated 'big-business price gouging' under the microscope.
Lastly, Parker Lewis' "Abundance Through Scarcity Paradox," presents the case that, "reliable scarcity of money [such as we have in Bitcoin] creates greater abundance, ...[since] The ability for savings to store purchasing power into the future is part and parcel to the existence of an incentive to produce in the present."
Learning Objectives
🎯 To gain an awareness of 'early warning signs' that forebode the death of a currency.
🎯 To gain an appreciation for the phrase 'gradually then suddenly'
🎯 To examine how and why a central bank might intentionally devalue a country's currency
🎯 To compare some proposed social, economic and political effects of monetary inflation with the present circumstances
🎯 To examine how Bitcoin's fixed supply makes it the most credible money ever created, and how its reliable scarcity creates greater abundance.
Stacker News Readings
⚡️ When Money Dies, by @CarlBMenger
⚡️ When Money Dies In The 21st Century, by @siggy47
⚡️ Abundance Through Scarcity Paradox | Parker Lewis, shared by @kr
Reflection questions
👉 Lewis writes, 'the more money you print, the more money you need.' How does this differ from conventional economic wisdom?
👉 Which of Menger's warning signals have come to fruition today? Why do you think these signals are in/significant?
👉 Why does bitcoin's scarcity lead to greater abundance, according to Lewis? What is the cultural mindset shift, he is referring to in his article?
For further study
⚡️ Gradually then Suddenly, "Chapter 1: Bitcoin Obseletes all Other Money", by Parker Lewis.
⚡️ "Deeper Down the Rabbit Hole", by Knut Svanholm
⚡️ [VIDEO] "What's the Problem - Demystifying Why We all Need Bitcoin", by Joe Bryan
⚡️ "Shelling Out: The Origins of Money", by Nick Szabo
Never stop learning
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⚡️On to Day 3⚡️This post (SNBC - Intro to Bitcoin - Day 2) was last edited 4 months, 3 weeks ago.