I was quite upset when I watched a 2-minute video in which, Ann Petifor, a so-called "Leading economist" explained why “Bitcoin isn’t real money” and “Bitcoin’s quite a Ponzi scheme”
http://uk.businessinsider.com/economist-ann-pettifor-bitcoin-money-finite-asset-currency-2017-2
These are her arguments:
- Bitcoin was invented by some big, bad guys on the dark web as a kind of secret currency for which they could use to exchange goods and services.
- The problem with a finite asset is that the economy is not finite
- It is too volatile to be useful.
There are my responses:
- Yeah, maybe they’re some big, bad guys. But they are better than some big, fat bankers that create money out of thin air to enrich themselves.
- The second point seems to have a big flaw. It’s too naïve to say that “the economy is not finite”. Economic activity and the wealth created have increasingly relied on borrowed money and speculation. Global debt now stands at around $200 trillion (over 280% of the world annual produce), an increase of $57 trillion since 2008. So we can tell that economic growth is just increased movements of money and the subjective worth of that economy. Money is an illusion. So it’s too soon to say that the economy is infinite in a finite world.
- Bitcoin is still an experimental financial instrument. It’s easy to understand why it is too volatile as the value of a bitcoin is tied purely to the laws of supply and demand.
