The Bitcoin Podcast

Episode #169: Monetary Revolution


Episode 169
November 29, 2017 — 53 mins
Guests: Daniel L. Thornton

We’ve heard a lot of feedback from listeners inquiring why we don’t talk about Bitcoin Cash much. Well, today we discuss the Bitcoin Cash Fund. What is that? Well it is a grass-roots project to accelerate the adoption of Bitcoin Cash. Created by maximalists, yes? You know the type…blah blah blah was long time bitcoiner since 2011 until recently when it was changed into a settlement layer for financial institutions. This design does not fit the original vision for Bitcoin that I signed up for. Bitcoin Cash follows that vision. Bitcoin Cash is King! BLIGGIFY BLARG!

Also our guest this week is Dr. D.L. Thornton, a Ph.D. economist who conducts economic research on a range of topics, especially economic policy. He provides consulting services and has presented his work at many of the world’s central banks. It makes for a good podcast episode because he is an excellent speaker with a knack for presenting complex and arcane economic ideas in simple, understandable terms.

Comments
  1. CryptoAustrian

    1 week ago

    Thornton @ 20:11 “What you want with a currency is a stable price. What we want in the United States is a low rate of inflation, right?”
    Wrong and wronger. What you (assuming that your goal is economic prosperity and the general flourishing of mankind) should want is prices that are free to move up or down in accordance with the desires of the general populace as expressed through voluntary individual transactions. “Price stability” is just a benign-sounding smoke screen that the Fed uses to justify its perpetual inflation to the unwitting public. In a growing economy with sound money (i.e., money that can’t be infinitely reproduced at the whim of central planners like DL Thornton), prices would tend to gently fall over time as technology improves and capital investment is channeled to its most profitable uses. Gentle price deflation (aka, gently increasing purchasing power) is not something to be avoided at all costs as the Fed’s “dual mandate” suggests. Gentle price deflation would allow you to comfortably retire (or achieve other long term financial goals) simply by accumulating cash in a low (or even zero) yield savings account instead of having to invest in risky assets like stocks. The (not always so) gentle price inflation intentionally created by the Fed forces you to seek yields at least equal to the inflation rate just to avoid having your purchasing power continually eroded. At the Fed’s target rate of 2% annual inflation, the dollar you save out of your first paycheck at age 20 will have lost 55% of its purchasing power by the time you’re ready to retire at age 60. The hard cap on the quantity of bitcoins is a feature that guards against wanton inflation, not a bug that hinders it from becoming a widely accepted currency.