What will Happen to Bitcoin when the Economy goes Bust?

What will Happen to Bitcoin when the Economy goes Bust?

Many people interested in Bitcoin have a less than optimistic view about the health of the global economy. This skepticism — in some cases pessimism — is fueled by a controversial business cycle theory that is fairly popular in Bitcoin circles. This theory holds that the easy money created by central and fractional reserve banks induce entrepreneurs to embark upon projects that are are not actually profitable. This action sparks a series of events, in which the economy booms, reaches a peak, and then comes crashing down. Although this theory is highly contested in academic economics....


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Why Bitcoin is Fated for Boom and Bust

Bob Swarup has extensive global experience in financial markets, macroeconomics and regulation, and recently released his new book Money Mania: Booms, Panics, and Busts from Ancient Rome to the Great Meltdown. Here, he presents his view on why bitcoin is fated to repeat the perennial cycle of boom and bust. It is human nature to believe that whatever happens to us is unique. Bitcoin is no exception to this rule. Discussions about bitcoin and its impact are everywhere at the moment. If you are a supporter, bitcoin is a digital messiah and an unprecedented paradigm shift in the evolution of....