Limited money supply vs. infinite money supply: No more bank bailouts because of Bitcoin?

Due to the way Bitcoin creates money, its maximum money supply is set at 21 million Bitcoin from the outset. This naturally entails stability and there is no danger of a loss of purchasing power through an expansion of the money supply. However, no large amounts of money can be created out of nothing. Should there be shortages in the money supply, the economy could not be supported by the creation of new funds. Rescuing banks and the euro would no longer be an option. However, since this type of money supply is mostly based on debt, massive indebtedness could be prevented through money creation as applied at Bitcoin.

Can the Bitcoin news trader review end the sovereign debt crisis?

In particular, the creation of girl money presents itself as problematic: If a large part of euro money is put into circulation through loans, almost all euros in circulation are based on debt. Sooner or later, these debts will have to be repaid. As soon as this would happen, however, there would be practically no euros in circulation. The sum of the whole money corresponds thus in approximately the sum of the Bitcoin news trader review debts. Therefore one speaks here also of a zero sum game: If one offsets all Euros with all debts in the euro currency area, one arrives at the sum zero.

In practice, however, things look somewhat different: Since all credits are lent with interest and compound interest, there are even more debts than money in circulation. So the debts can never be repaid – except by taking on new debts with new interest rates. This can have devastating consequences, as it puts the economy under constant pressure to grow in order to service the constantly growing interest rates.

Does the Bitcoin news trader scam inhibit the economy?

The Bitcoin news trader scam is not created by debt, so it can be described as a plus-sum game. The problem mentioned therefore does not arise with the Bitcoin. On the contrary, if the Bitcoin news trader scam is accepted worldwide, it could even help to end the global sovereign debt crisis. One could, for example, service the debts that one would otherwise never be able to repay due to the way the euro was created, now in the form of Bitcoins.

The individual investor is of course happy about money, which is becoming increasingly valuable, as is the case with Bitcoin due to its artificial shortage to 21 million units. Whether this is beneficial as a macroeconomic currency, however, is another matter. Because money that is always worth more is spent less and hoarded more. And, of course, the economy depends on a steady flow of financial resources. The euro, with its slightly inflationary tendency, tends to invite spending and could therefore make more sense in macroeconomic terms as a means of payment.

It also makes sense for central banks to take a closer look at the advantages of crypto currencies in order to adopt possible advantages in a reform of the monetary system. It is not for nothing that there are always ideas as to how state crypto money could be implemented.

Perhaps these can make a valuable contribution to combining the advantages of both systems in crypto money.