Free Capitalist Network - Community Archive
Mises Community Archive
An online community for fans of Austrian economics and libertarianism, featuring forums, user blogs, and more.

Keynesian blog: bitcoins are being hyperinflated

rated by 0 users
This post has 10 Replies | 3 Followers

Top 75 Contributor
Posts 1,149
Points 23,875
Freedom4Me73986 Posted: Fri, Jan 13 2012 9:39 PM

http://nakedkeynesianism.blogspot.com/2012/01/hyperinflation-in-bitcoinland.html

I have no clue what to think of this other than the fact he's probably telling a half-truth.

  • | Post Points: 50
Top 10 Contributor
Male
Posts 4,987
Points 89,745
Wheylous replied on Sat, Jan 14 2012 10:16 AM

Bitcoin is not (at least yet) money.

  • | Post Points: 20
Top 25 Contributor
Male
Posts 4,249
Points 70,775

His reasoning is like this:

1. Austrians say money printing causes hyperinflation.

2. But bitcoin had hyper inflation for a different reason.

3. Therfore Austrians are wrong.

Which is like saying

1. Doctors say jumping off tall buildings can kill you.

2. But here's a guy who was killed by being run over by a truck.

3. Therefore the doctors are wrong.

 

My humble blog

It's easy to refute an argument if you first misrepresent it. William Keizer

  • | Post Points: 20
Not Ranked
Posts 5
Points 70

Not really half-truth. A very simple statement. People that created and use bitcoin say that it is the ideal (and perhaps the future) of money, because it is independent from political meddling. Nobody can go and print it like the Fed. And that is supposedly good because it precludes inflation. That is a testable hypothesis. It turns out that there is inflation. Nothing against bitcoins per se, by the way.

  • | Post Points: 5
Not Ranked
Posts 5
Points 70

If it is used as a means of payments it does have functions of money.

  • | Post Points: 20
Top 10 Contributor
Male
Posts 4,987
Points 89,745
Wheylous replied on Thu, Jan 19 2012 9:37 PM

By that reasoning any barter good is money, no?

  • | Post Points: 20
Not Ranked
Posts 5
Points 70

Dave, the only thing I said about Austrians is that the view of inflation is loosely based on Austrian views. Don't believe that any serious Austrian economist is involved with bitcoins. I do believe that Austrians are wrong about inflation, but the post says nothing about that, hence your silogism is not a fair representation of what I said. What I said is that people that use bitcoins do not understand that inflation could happen for other reasons. By the way, inflation could be caused by excessive printing of money, but under very specific conditions (the economy would have to be at full employment). I can actually post on Austrian views of inflation, and alternative views, and we could have a more intelligent discussion. 

  • | Post Points: 20
Not Ranked
Posts 5
Points 70

Yep. There are several quasi-money tokens around.

  • | Post Points: 20
Top 10 Contributor
Male
Posts 4,987
Points 89,745
Wheylous replied on Thu, Jan 19 2012 9:45 PM

Seems pretty useless to use the term "money," then.

  • | Post Points: 20
Not Ranked
Posts 5
Points 70

Maybe so, but that is what the profession does. Check any textbook of money and banking and you will find that the definition of money is by its functions. Money is what money does. Means of exchange, reserve value and unit of account. Not everything is money, so it is less useless than you would think.

  • | Post Points: 5
Top 25 Contributor
Male
Posts 4,249
Points 70,775

Naked,

My mistake then.

My humble blog

It's easy to refute an argument if you first misrepresent it. William Keizer

  • | Post Points: 5
Page 1 of 1 (11 items) | RSS