Bloomberg suggests the unthinkable for Bitcoin

A new opinion piece from a Bloomberg economist suggests the unthinkable: the real problem with Bitcoin is that it’s deflationary.

A new op ed by Noah Smith – former assistant professor at Stony Brook University – has set the cat among the Bitcoin maxis.

Titled ‘The Key To Bitcoin’s Future: Inflation‘ Smith argues that the only way Bitcoin will ever be used as widely as US dollars is if proponents abandon the idea of deflationary digital gold.

This is of course heresy among Bitcoiners who think that one of Bitcoin’s greatest strengths is its fixed supply.

They believe this is the key to its value, as central banks print ever increasing amounts of money to get themselves out of debt at the expense of the savings accounts of citizens.

“People will use this asset as currency because it’s more valuable than other assets”, said a bunch of people who didn’t know Gresham’s Law

— Noah Smith 🐇 (@Noahpinion) February 23, 2020

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