Интернет Деньги Биткоин Отзывы - Money Printer Go Brrrrr: Bitcoin’s Solution to the Federal Reserve

Список Криптовалют И Их Характеристики Таблица 2017. Each addition is printing money. Full stop. And as the Federal Reserve has just assured us on national television, “there’s an infinite amount of cash at the Federal Reserve.”

While these actions may provide short-term stability, like any stimulant, they bring a nasty set of side effects:

Asset price inflation and wealth inequality from cheap debt. As the money printing pushes the costs of borrowing artificially low, corporations have taken on massive amounts of low-interest debt to finance trillions in stock buybacks. The stock indexes have increased several hundred percent while economic growth has been lackluster causing massive inequality and social unrest. This phenomenon, where those closest to newly created money see disproportionate benefits, is known as the “Cantillion Effect.”
Economic stagnation by protecting poorly managed firms. Bailouts prevent capital to be reallocated to more sophisticated and careful management. This rewards poor decisions and and creates unproductive zombie companies which linger for years. For reference, see Japan’s Lost Decade and the sluggish economic growth of the past 10 years.
Erosion of purchasing power by devaluing the US dollar. As money is printed and currencies lose their value, this most severely impacts the savings of average citizens. This punishes people who use their money as a savings vehicle and creates strong incentives for excessive consumption.
Unsustainable deficits through manipulation of interest rates. As the Federal Reserve purchases trillions of government bonds, this drives interest rates below the natural rate. Thus, the government is able to borrow larger and larger amounts of debt at the cost of future generations.
Systemic fragility by centralizing financial institutions. Printing money to bail out “too big to fail” banks, while letting smaller financial service providers go bankrupt, centralizes our financial system. With fewer competitors, this makes the remaining players even more powerful and fragile. This perverse system of incentives all but guarantees future bailouts down the road.
In the eyes of many concerned citizens with longer time-horizons than the upcoming election cycle, this is the wrong path. Sacrificing our future to pay for the present will only usher in an era of poverty and disrepair. Thankfully, Bitcoin provides another way.

The Bitcoin Solution
Bitcoin is a virtual currency created in 2008. What makes Bitcoin unique is that it is the first scarce digital asset without a centralized owner. The bitcoins are created, sent, and received over a peer-to-peer protocol without any intermediaries. Bitcoin uses a form of database called a blockchain which creates a linear history of changes to the ledger that cannot be undone. (For a technical introduction, see this video)