Bitcoin vs. Modern Monetary Theory

We are about the experience “the worst economic downturn since the Great Depression,” according to International Monetary Fund (IMF) Chief Economist Gita Gopinath. The coming economic downturn will be the result of the lockdown measures that were put into place by governments around the world to combat the spread of the Coronavirus.

As several central banks are switching on the printers in an attempt to stimulate the economy with a fresh round of quantitative easing, economic theory is brought into the forefront of public policy.

In this article, we discuss Modern Monetary Theory in today’s world and how Bitcoin (BTC) relates to it.

MMT explained

In a nutshell, Modern Monetary Theory, also known as Modern Money Theory or MMT, is an economic theory that suggests that governments that issue their own fiat currencies should print as much money as they need.

According to MMT, government spending is not constrained by funds coming from taxation…