Is Hyperinflation Inevitable? Jack Dorsey Says It’ll “Change Everything”
23 Oktober 2021 - 11:28PM
NEWSBTC
When Square’s boss Jack Dorsey talks about hyperinflation, the
world listens. And Twitter reacts. Since so-called developed
economies are now feeling the pain that inflation brings, the
concept is in everyone’s mind. Every human has a front-row seat to
witness the consequences of the United State’s relentless money
printing. And, since the Dollar is still the reserve currency of
the world, they’re all feeling it too. Related Reading |
Bullish For Bitcoin: US Inflation Expectation Breaks Out From
Decade Long Downtrend This is Jack Dorsey’s tweet: Hyperinflation
is going to change everything. It’s happening. — jack⚡️ (@jack)
October 23, 2021 As you can see, he doesn’t merely talk about
inflation. He goes for “hyperinflation,” which caused adverse
reactions in the replies and the quoted tweets. They accused him of
fear-mongering and quoted official numbers at him. And the
nay-sayers probably have a point here, because the US is far
removed from the reality that word implies. However, one thing’s
for sure: money printer goes brrrrrrrr… and it hasn’t stopped
working since Covid hit. Negative And Moderate Reactions To Jack
Dorsey‘s Tweet This is an example of an unnecessarily insulting
response from a traditional finance person. 2/ step back and
it’s disturbing that a lot of most powerful financial
figures/oligarchs are invested, literally and figuratively, in
various huckster schemes and libertarianish fantasies of state and
civilizations collapse. — Josh Marshall (@joshtpm) October 23, 2021
This man has obviously not done his homework regarding Bitcoin, so
his argument is invalid. And doesn’t require a response. Plus, he’s
being insulting to get attention, which he got. So, good for him
and his dopamine levels. Let’s hope he has fun staying poor. This
is a Venezuelan economist with a moderate answer to Jack Dorsey. I
don't think it will. But it doesn't need to happen for things to
get ugly. https://t.co/Cj85mJ8o7x — Eduardo Gavotti
(@EduardoGavotti) October 23, 2021 Since Venezuelans have
first-hand experience with hyperinflation, let’s take what he says
into account. The US is just feeling what inflation does. So-called
developing economies live with that concept on their backs every
second of every day. BTC price chart for 10/23/2021 on Bitstamp |
Source: BTC/USD on TradingView.com Informative Reactions To Jack
Dorsey’s Tweet The Human Rights Foundation’s Alex Gladstein, a
notorious Bitcoin maximalist, had this to say to Jack Dorsey. Those
shocked by this tweet live in a bubble of financial privilege. *1.3
billion* live under double, triple, or quadruple-digit inflation:
Turkey, Nigeria, Ethiopia, Iran, Lebanon, Venezuela, Cuba, Sudan,
and beyond. It’s already one of the world’s biggest humanitarian
crises. https://t.co/P83opDagdu — Alex Gladstein 🌋 ⚡ (@gladstein)
October 23, 2021 He’s not lying. Hyperinflation is “already one of
the world’s biggest humanitarian crises.” However, the US is far
away from “Turkey, Nigeria, Ethiopia, Iran, Lebanon, Venezuela,
Cuba”, and Sudan’s situation. And, since the Dollar is still the
reserve currency of the world, they have a comfortable cushion to
resist the constant money printing’s effects. Serial entrepreneur
and former Coinbase CTO, Balaji Srinivasan, answered Jack Dorsey
with a fully-fledged idea. A “censorship-resistant inflation
index.” I wrote a spec for a censorship-resistant inflation index.
It’s framed for a startup, but Square could easily do this. In a
crisis, accurate inflation info would be something people checked
Twitter for every day. @milessuter @moneyball @jack
https://t.co/SYb2mfxjex — Balaji Srinivasan (@balajis) October 23,
2021 In the project, he brings forth some hard truths: “If
inflation is a government-caused problem, we can’t necessarily rely
on government statistics like the CPI to diagnose it or remediate
it. Indeed, in places with high inflation, censorship and denial is
the rule rather than the exception.” If you are technically
capable, there’s still time to send your proposal and earn “A $100k
Prize for a Decentralized Inflation Dashboard.” Be aware that “if
you use Chainlink’s oracle tech in your project, the best dashboard
will be eligible to receive a $100k grant in LINK tokens.” Those
tokens are in addition to the main prize. Poor Understanding Of The
Terminology In a Twitter Spaces room specifically dedicated to Jack
Dorsey’s tweet, notorious podcaster Preston Pysh concluded. “I
think people’s understanding of the terminology, deflation,
inflation, is just grossly misunderstood. And so, when you say
we’re going to have these deflationary events that are then going
to lead to more QE, which is then going to result in more
inflationary events. I completely agree with you, but we’re talking
that there’s so much information loss in such a simple word as
deflation and inflation. So the deflationary event is that this
whole system is constructed as credit.” When he says QE, Preston
refers to Quantitative Easing, which Investopedia defines as:
“A form of unconventional monetary policy in which a central
bank purchases longer-term securities from the open market in order
to increase the money supply and encourage lending and investment.
Buying these securities adds new money to the economy, and also
serves to lower interest rates by bidding up fixed-income
securities.” Related Reading | Jack Dorsey Plans to Build A
Decentralized Exchange For Bitcoin That being said, Preston asks:
“How many people in the US, or in the world, have that context when
that’s not their expertise, right? They didn’t get a major in
macroeconomics, or finance, or whatever. So, it’s just all
buzzwords that people throw around. And, in the meantime, no one
really even understands what those definitions even represent.” For
more information about inflation, check out the Bitcoinist Book
Club analysis of Saifedean Ammous’ “The Bitcoin Standard.” Featured
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