Little flu? Yes, I love the new properties you got from Are Oust and Jon Olaf Olaussen DN August 30t and update my profile. We who are not true economists must decorate ourselves with what we obtain or find.
Oust and Olaussen believe that non-Western countries deserve a better monetary system than Bitcoin. I want to simplify it on the fact that non-Western countries need a better monetary system than it is today, and that the whole world needs to move away from the hegemony of the dollar and the hegemony of the United States.
Bitcoin as a neutral alternative reserve currency is unthinkable in the future, perhaps as a digital alternative to John Maynard Keynes bancor.
I cannot see that there is a real alternative to improving the daily lives of the many who live without a bank account and banking services. For many of these, bitcoin will mean a better day and an opportunity to participate in the global economy.
Bitcoin, which is used to transfer funds (remittances) between people in different countries, is stable and in strong growth. Bitcoin’s unique features with final (final) settlement and no counterparty risk, make it a great value transfer system.
We agree that the twists are a challenge, but I’m not as sure as Oust and Olaussen that it will last forever. Gold has shown that inelastic supply does not necessarily lead to large fluctuations in the long run.
Gold is also an interesting comparison with Bitcoin in the process of drilling. Mining in the gold industry is an absolute environmental and climate disaster, without us hearing much about it. If bitcoin can replace some of the demand for gold, that will be positive for both the environment and the climate.
The shutdown of bitcoin mining in China in the past six months has brought about significant changes in the energy mix and increased the renewable portion, financial editor Terje Erikstad wrote recently. The trend towards more renewable energy is likely to continue, and here an updated overview from the University of Cambridge’s Center for Alternative Finance is a helpful resource.
Then the big question a quarter later becomes where the renewable energy is sourced from, and how it is distributed. If Oust and Olaussen think the market should not control distribution, that’s interesting.
Bitcoin used by criminals is a stubborn myth. Chainalysis, the research company that provided data for the latest reports, is perhaps the most hated company among Bitcoin enthusiasts. They provide services to investigators, prosecutors and tax authorities in many countries. So their interest in mitigating the suspicious use of Bitcoin is absurd.
Deira analyzes support scholarly articles on the subject, eg Paolo Tasca and Associates. Its comprehensive review of bitcoin transactions from 2016 (“The Evolution of the Bitcoin Economy”).
But back to the starting point in this discussion: the lack of interest and curiosity of economists about Bitcoin and cryptocurrencies. I must admit that my plots probably did not invite dialogue, but rather provoked. To make up for this, I invite Are Oust and Jon Olaf Olaussen to visit my Bitcoin session at Høgskulen på Vestlandet. I have one guest every week, Bitcoin enthusiasts and Bitcoin critics, as we discuss different aspects of this phenomenon.
I conclude with the words of Per Sivle, refreshing it a bit: And that’s the important thing, and this is the big deal, that Bitcoin is the economist he’s drowning in!(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.
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