BREAKDOWN: Bitcoin Leads to Hyperinflation? Meet the Strangest FUD Yet
CoinDesk Podcast Network
CoinDesk
4.8 • 689 Ratings
🗓️ 12 July 2021
⏱️ 13 minutes
🧾️ Download transcript
Summary
Some argue bitcoin wealth is exhausting the world’s productive potential.
This episode is sponsored by NYDIG.
In this episode, NLW focuses on:
- Inflation measures, impacts and who’s to blame
- News out of Paraguay concerning pro-bitcoin legislation
A recent “Wall Street Journal” survey of economists revealed they expect higher inflation rates to persist for years to come. “Money Week” ran an op-ed playing on the increased attention on inflation where they pin bitcoin as an unused hoard of productive wealth and a reason for inflation. Is bitcoin really to blame for expectations of continuing inflation?
El Salvador’s influence continues to permeate other nations hoping to make similar advances in crypto. On Wednesday, July 14, a Paraguayan “Bitcoin Bill” is expected to be introduced. Though the exact contents of the bill are not yet known, Paraguay would be the next country setting a positive stance towards crypto.
Lastly, NLW covers more in bitcoin and crypto news. What does Grayscale’s move to make its Large Cap Fund a Securities and Exchange Commission reporting company mean? Also, can China’s post-COVID economic recovery be an indicator for what will happen in the rest of the world?
Grayscale is owned by Digital Currency Group, which is CoinDesk’s parent company.
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NYDIG, the institutional-grade platform for Bitcoin, is making it possible for thousands of banks who have trusted relationships with hundreds of millions of customers, to offer Bitcoin. Learn more at NYDIG.com/NLW.
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The Breakdown is written, produced by and features NLW, with editing by Rob Mitchell and additional production support by Eleanor Pahl. Adam B. Levine is our executive producer and our theme music is "Countdown" by Neon Beach. The music you heard today behind our sponsor is "Razor Red" by Sam Barsh. Image credit: Devrimb/iStock/Getty Images, modified by CoinDesk.
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Transcript
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| 0:00.0 | If that point is that a lot of money goes to chasing stupid things for the sake of making more money, |
| 0:04.5 | not making society better and more productive in the future, well, yeah, that's sort of part of |
| 0:08.1 | the deal when it comes to free market capitalism. I think it's a fundamental type of financial |
| 0:12.2 | ludicism to take this point of view too far, and certainly to apply it to Bitcoin. |
| 0:16.6 | In fact, I think one could pretty compellingly argue that Bitcoin's main function for many |
| 0:20.6 | of its users is to preserve the capital available to be deployed for future productive purposes. |
| 0:26.0 | If a person is holding to preserve their wealth in the face of inflation, that means they're |
| 0:29.7 | going to be able to deploy that capital to other things instead of seeing its value evaporate |
| 0:33.4 | to the benefit of no one. |
| 0:35.9 | Welcome back to The Breakdown with me, NLW. |
| 0:40.1 | It's a daily podcast on macro, Bitcoin, |
| 0:42.5 | and the big picture power shifts remaking our world. |
| 0:47.2 | The breakdown is sponsored by Nidig and produced and distributed by CoinDesk. |
| 0:53.6 | What's going on, guys? It is Monday, July 12th, and we're going to kick off this week with one of our sort of extended brief editions, where instead of going massively in depth on one topic, I'm going to hop and skip across a few. |
| 1:06.0 | One note, if my voice sounds a little janky, I have whatever sickness every kid on the planet |
| 1:11.4 | Earth has right now post-COVID as it comes back. But either way, let's dive in with our title |
| 1:17.0 | story. The Wall Street Journal does a regular poll of economists, and you can more or less guess |
| 1:22.4 | the gist of the sentiment from the headline. Quote, higher inflation is here to stay for years, economists forecast. |
| 1:30.5 | This set of Wall Street Journal surveyed economists now expect inflation excluding food and |
| 1:35.6 | energy to be up 3.2% in Q4 of this year, and they expect the annual rise to hover around |
| 1:40.9 | 2.3% in 2022 and 2023. If that plays out, it would mean an average annual |
| 1:46.4 | inflation rate of 2.58% from 2021 to 2023, which would be the highest since 1993. |
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