Legacy Finance Adapts under Bitcoin

What would life be like for the central banks under a Bitcoin standard? Jonathan Garner gives his take on that question


“The bitcoin standard would mean that central banks would and should hold bitcoin on their balance sheets. Perhaps this would mean that central banks would not be needed anymore, but like any government agency or quasi-government agency, that doesn’t necessarily mean they will go away. Central banks will hold bitcoin because it will give their countries an advantage over other countries where the central banks don’t. The more free that a country is, the stronger it is against other countries. Bitcoin is freedom. Bitcoin is freedom from financial oppression.

The bitcoin standard would also mean that the bond market would be superfluous, as outlined in “The Bitcoin Standard,” or at least most of it would be. Under bitcoin, the economy would move from a debt economy to a savings economy. The economy would also move back to being more about production than consumption because consumption and debt don’t grow economies. This means that the current system, which is not under a bitcoin standard, is very sick, as outlined in “The Fiat Standard.”

In my estimation, the bitcoin standard would mean that the stock market would shrink. With sound money, people would actually have savings, which would change the way they invest. But that doesn’t mean there wouldn’t be an economy or economic growth. Again, it just means that people will use savings more than they do now. They will rely on savings instead of debt.

A lot of current businesses will go out of business, but that’s capitalism. Some companies need to go belly up. The companies that are productive and provide value will survive. This includes companies that are involved with Bitcoin. Bitcoin companies provide value and can pay dividends in bitcoin.”



Master Asked on March 23, 2023 in Bitcoin.
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