Pitfalls, Bitcoin Inflation Narrative – Bitcoin Magazine: Bitcoin News, Articles, Charts, and Guides
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In this episode of Bitcoin Magazine’s “Fed Watch” podcast, we, your hosts Christian Keroles and Ansel Lindner, had the privilege of sitting down with Aaron Segal of Bitcoin Magazine and Jeff Booth, author of “The Price Of Tomorrow”, to discuss some of the pitfalls of the current prevailing narratives in Bitcoin and healthy money.
Segal is a bit new to Bitcoin, but has already caused a sensation with two great essays for Bitcoin Magazine. The first is “Bitcoin Information Theory: BIT” and the second and main topic of this podcast is “Thinking Too Small And The Pitfalls Of The Inflation Narrative”. In both essays, Segal gives a new look at the Bitcoin space from an insightful perspective for new market entrants.
In this episode we have tried to substantiate the deflationist perspective, or at least why the inflationist perspective is not a given. Segal and Booth began by saying it was important to peel the onion and not rest on superficial monetary memes like “money printer go brrr”. Segal does not want to get involved in labels, but rather to focus on the underlying mechanisms of technological deflation and monetary inflation.
We pushed back a little and asked, “Isn’t it important to be right for the right reason?” Many Bitcoiners are heavily invested in this area, and when they are right for the wrong reason (inflation), labels become important, to understand why. What followed was a very broad and varied discussion on the issues in question.
In the second half of the podcast, we covered some specifics of Federal Reserve policy, such as quantitative easing (QE) and reverse repo (RRP). We answered questions like, “Can the Fed rejuvenate the QE?”, “Is the EIA like a rejuvenation?” And “Is the Fed doing anything anyway?” The simple 1970s-style inflation narrative can get the nuances of what we are Seeing the Fed and the global economy today, not explaining. The Fed is trapped in the inertia of the prevailing monetary paradigm. The only answer it has is to increase reserves through QE, but thereby tie the deflationary anchor of debt to the base of the economy.
It was a great conversation and mandatory listening for next level bitcoin understanding.