Chamath PalihapitiyaInflationMarkets

Why Chamath Is Wrong About Inflation

Recent comments from Chamath Palihapitiya indicate that he doesn’t understand how inflation or monetary sovereignty really work.While billionaire Chamath Palihapitiya has been an early, vocal proponent of Bitcoin for nearly a decade now, his grasp of Bitcoin’s ethos seems to be fraying. Setting aside his recent snafu with Bitcoin veteran and advocate Surfer Jim, Chamath doesn’t seem to understand principles of inflation, wealth inequality or their historical context.When Lyndon B. Johnson enacted the Great Society programs of the ’60s to alleviate poverty and elevate the general well being of Americans, the world still operated on a gold standard. The government couldn’t print trillions seemingly out of thin air to finance its spending. Today’s world is a stark contrast.Now, the government can create new money to finance expenditure, bail out corporations, and airdrop USD to people’s bank accounts. Such spending has doubled the USD money supply in the last decade, leading to warranted concerns about inflation. But listen to what Chamath says about inflation on a recent episode of “All In Podcast”:”Inflation is a phenomenal way to decrease people’s richness… it makes rich people poorer… The one consistent way to redistribute wealth is inflation.”Chamath is unequivocally wrong. Inflation is one of the biggest drivers of wealth inequality for two reasons: the Cantillon effect, and the debasement of savings for the 45 percent of Americans who don’t own financial assets.SourceThe Cantillon Effect, Inflation And Wealth InequalityA litany of literature has been written by economists, Bitcoiners and …
Story continues on Bitcoin Magazine

Related posts

Market Volatility Liquidates More Than $600M in Bitcoin Positions

Volatility is rampant in the cryptocurrency market, wiping many overleveraged Bitcoin traders. Bitcoin Wipes Out Overleveraged Traders Bitcoin staged a 9,500-point turnaround in the past six days, gaining nearly 19% in market value.  According to Willy Woo, the impressive upswing…

Despite Uncertainty in the US, Ripple Finds Traction in the East

While the SEC vs. Ripple case continues to unravel, the distributed ledger startup makes significant strides to expand its business throughout Southeast Asia, helping XRP regain bullish momentum.  Ripple Grows Across Eastern Markets Ripple seems unaffected by the repercussions of the U.S….
Cointelegraph.comHoloMarketsOrigin protocolPrice analysisWanchain

New partnerships send Holo (HOT), Wanchain (WAN) and Origin Protocol (OGN) higher

Surprise NFT drops, new partnerships and sticking to the project development roadmap are the primary factors behind the rally in Holo, Origin Protocol and Wanchain. On March 30 PayPal president and CEO Dan Schulman told Reuters that the online payment…