Not Real Money, Is Bitcoin Like Gold or a Monet Painting? Busting Cryptocurrency Myths
How has cryptocurrency performed in the inflation department? Terrible!
A blockchain is an open, distributed ledger or database, and the data contained in the blockchain is decentrally distributed and duplicated across many computers. This decentralization makes blockchain unique as opposed to a centralized database controlled by a company or government.
The independence of the blockchain from central control is said to be the magic that makes Bitcoin unique.
Economic theory in developed markets is based on the Modern Monetary Theory (MMT), which essentially states that countries like the US, UK, Japan, and Canada – which spend in a fiat currency they fully control, spend taxes and credit – freely as they can always print more money to pay off debts in their own currency.
While this may be true to a point, like almost everything else in the real world, an excess of good things almost always leads to bad results. MMT taken to extremes will almost certainly lead to inflation.
And yet, how exactly have cryptocurrencies performed in the inflation department in their short period of existence? Much worse than boring old fiat currencies, those terrible anachronisms! Cryptocurrency as an asset class has seen rampant inflation.