Bitcoin also won’t put gas in your car or provide medical care for your family. To be clear, I mean this literally. I realize people have made millions and billions speculating in Bitcoin. They can use that money to buy food, gas, and medical care, but the point is that Bitcoin doesn’t actually produce these items or anything else that we directly consume.
That may seem obvious, but this simple point is important to anyone interested in thinking about Bitcoin seriously. If our economy is facing supply constraints, as was the case at times in the recovery from the pandemic recession, Bitcoin will not help address the problem. It does not produce any of the goods and services that people need.
If Bitcoin, or other crypto currencies, sell for high prices, it means that the people who hold these currencies can command more of a limited supply of goods and services. In other words, high priced crypto is a recipe for inflation, in the same way as would be the case if the government just dropped trillions of dollars from the sky for people to grab on the streets and in their backyards.
As much as I like to argue against Bitcoin, this article is stupid or to be more correct the author of this article has no understanding of currency despite claiming to be a senior economist.
Not crypto (i.e. BTC) is the problem, but the gov/fed printing more $ is.
Money is just a unit in which we measure how much value one has generated for another person. If the gov prints more of those units they change the scale and basically rob from everyone who uses that scale to store his wealth (say surplus or unused/unclaimed value from other people) in. If now some people start to create a new scale for measuring that value of goods and services like BTC or in our case XMR, we just quit getting robbed a second time by the gov (first time is through paying taxes).