Mind Matters Natural and Artificial Intelligence News and Analysis

TagPaul Krugman

bitcoin-cryptocurrency-virtual-money-concept-stockpack-adobe-stock
Bitcoin cryptocurrency, virtual money concept

Has the Bitcoin Supply of Greater Fools Finally Been Exhausted?

It’s a bubble fueled by babble

The Declaration of Bitcoin’s Independence, endorsed by numerous celebrities, states that, We hold these truths to be self-evident. We have been cyclically betrayed, lied to, stolen from, extorted from, taxed, monopolized, spied on, inspected, assessed, authorized, registered, deceived, and reformed. We have been economically disarmed, disabled, held hostage, impoverished, enervated, exhausted, and enslaved. And then there was bitcoin. Bitcoin and other cryptocurrencies are, in reality, not useful alternatives to cash, checking accounts, debit cards, credit cards, and the other components of the financial system that powers the economies of developed countries. Blockchain technology is slow, expensive, and environmentally unfriendly. In 2021, Cambridge University researchers estimated that bitcoin blockchains consume as much electricity as the entire country of Argentina, with only Read More ›

concept-idea-of-fed-federal-reserve-system-is-the-central-banking-system-of-the-united-states-of-america-and-change-interest-rates-percentage-icon-and-arrow-symbol-on-wooden-cube-stockpack-adobe-stock.jpg
Concept idea of FED, federal reserve system is the central banking system of the united states of america and change interest rates. Percentage icon and arrow symbol on wooden cube

Central Banks vs. Cryptocurrencies: Why the Growing Tension?

Modern Monetary Theory (MMT), which is gaining ground, holds that government should just print as much money as it feels it needs and then raise taxes to cover shortfalls

On the way to explaining how a cryptocurrency system might work, financial analyst Bernard Fickser asks readers to think about the crucial difference between money, as held by a private bank — we’ll call it Merchant Navy Bank — and a central bank operated by a government, say the U.S. Federal Reserve System (the Fed). In his short online book, The Creation of Money, Fickser distinguishes between private banks and central government banks. Private banks start with money that already exists. The money that Merchant Navy Bank lends for mortgages, for example, is contributed by depositors who agree to tie up their money for several years in savings certificates. In return, they get a higher than average rate of interest. Read More ›