The Central Bankers Who Think Bitcoin Could Destroy Society

The Breakdown

Nathaniel Whittemore

Investing, Business

4.8 • 786 Ratings

🗓️ 23 October 2024

⏱️ 13 minutes

🔗️ Recording | iTunes | RSS

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Summary

A paper published by the ECB makes some incendiary arguments. Is this the latest greatest expression of "and then they fight you" or are we getting all worked up for nothing? Unlocking Bitcoin DeFi with ExSat The exSat Network aims to unlock and scale the Bitcoin ecosystem without compromising Bitcoins Ideology. The network has partnered with the largest mining pools in the world, major custodians and exchanges, BitTrade, Cubolt, Matrixport, Everstake, OKX and aims to have over $200M TVL at mainnet launch on the 23rd of October. Follow exSat’s Twitter to stay up to date @exsatnetwork or visit the testnet exsat.network Enjoying this content? SUBSCRIBE to the Podcast: https://pod.link/1438693620 Watch on YouTube: https://www.youtube.com/nathanielwhittemorecrypto Subscribe to the newsletter: https://breakdown.beehiiv.com/ Join the discussion: https://discord.gg/VrKRrfKCz8 Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW

Transcript

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0:00.0	Welcome back to The Breakdown with me, NLW.
0:09.2	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:18.4	What's going on, guys? It is Monday, October 21st, and today we are talking about how Bitcoin could
0:24.2	destroy society. Before we get into that, however, if you are enjoying the breakdown, please go
0:28.7	subscribe to it, give it a rating, give it a review, or if you want to dive deeper into the conversation,
0:32.7	come join us on the Breakers Discord. You can find a link in the show notes or go to bit.ly slash
0:36.5	breakdown pod. Well, friends, economists in the show notes or go to bit.ly slash breakdown pod.
0:41.9	Well, friends, economists from the European Central Bank think that Bitcoin could, yes,
0:46.6	destroy society. A new paper was recently released called the Distributional Consequences of Bitcoin, written by two ECB economists. The economists argue that perpetually rising
0:51.5	Bitcoin prices would only benefit early holders and would, quote,
0:54.5	imply a corresponding impoverishment of the rest of society, endangering cohesion, stability,
0:58.9	and ultimately democracy. The paper explicitly ponderes the scenario where Bitcoin is not a bubble,
1:03.8	well, welcome to the party guys, but rather a perpetually rising investment asset. Under those
1:08.3	circumstances, it argues that, quote, early adopters exactly increase
1:11.7	their real wealth and consumption at the expense of the real wealth and consumption of those who do not
1:15.1	hold Bitcoin or who invest in it only at a later stage. The underlying premise of the paper is that
1:19.7	Bitcoin is not a productive asset like stocks, commodities, and real estate. Therefore, the paper
1:23.6	argues, the new Lamborghini, Rolex, Villa, and equity portfolios by early Bitcoin investors do not stem from an increase in the economy's production potential, rather they
1:31.1	are financed by diminishing consumption and wealth of those who initially do not hold Bitcoin.
1:35.3	Because its valuation is not tethered to cash flows or other metrics, they suggest, quote,
1:39.0	any price for Bitcoin is equally plausible, including 10 million or more as none of these prices
1:42.9	as any particular economic justification or imputed basis. This then leads to the conclusion that, quote,
	...

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