We live in a world where everyone is right. Obviously, it is a highly polarized world. It could be said that there is no longer a debate. What we have, instead, are warring tribes. Few are those who trust the experts. Because the “experts” are part of the conspiracy. “Only the experts of my tribe are right.” That is, only the expert who tells my truth is a true expert. The rest of the “experts” are swindled ex officio. The “Bitcoin fix that” vision is very convenient because in opposition you are always right. After all, “economists don’t know anything about economics.” Let’s talk about this phenomenon.
I love Bitcoin. I have Bitcoin. I buy Bitcoin. And I use Bitcoin. That is not to say that I should blindly follow whatever other bitcoiners say. I claim my right to doubt. The asset is great. In fact, investing in Bitcoin has been one of the smartest financial decisions of my life. I highly recommend it. Now, that does not imply that I should adopt libertarian dogmas. I mean the promotion of the libertarian utopia: End of banks, end of fiat money, free market for everything, zero regulations, and Bitcoin for everyone. In the same way that we can buy gold as an investment without advocating a return to the gold standard, we can well invest in Bitcoin as an investment without embracing the political element. Or do you not have that freedom?
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What does “Bitcoin fix that” mean? First of all, it is a kind of messianism. In other words, the magic solution for all our problems. But he is a messiah in an anarcho-capitalist version. Of course, this is a very popular view among libertarians, anarchists, and talkers. You could say that the idea fits like a glove for the Californian ideology: Libertarianism, technology and counterculture. In theory, everything is very simple. Non-state intervention, economic conservatism, personal freedom and technology with a force for good.
What is the solution? Free Market Fundamentalism and a Hard Currency. Bitcoin fixes that. That is, everything will work in a free market. No central planning. Systems can be fully decentralized thanks to blockchain technology. The origin of everything, of course, is money. Which makes fiat money the source of all evil. In this case, the proposal would be to replace fiat money with Bitcoin. Not by government decree, but on a voluntary basis. This is hard money. Rather, money with limited supply. But its rate is defined by supply and demand. In a way, it would be a return to commodity money. But, this time, with better technology. In other words, what was not possible before is now possible.
It all sounds wonderful. But it is clear that these are the old liberatory dogmas. This time clad in tech rhetoric. Everything sounds state-of-the-art, but deep down they are older ideas than suction cups. I decided to write this article after listening to an interview with Anthony Pompliano on CNBC. Obviously the subject is a member of the libertarian tribe with very defined visions about the economy. But We also have Cathie Wood, Thomas Lee, and Mike Novogratz who introduce us to another style of being a bitcoiner. It is a less political and more financial style.
Read on: “Bitcoin Will Replace the Dollar”: Possibility or Delusion?
Postmodern tribes develop with their own ideas. And, of course, they don’t trust economists when it comes to economics. Why? The cypherpunks were not economists. Satoshi Nakamoto was not an economist. However, any bitcoiner would trust them more than any Nobel laureate in economics. In fact, the opinions of economists are always very different from the opinions of the general public. Economists, for example, tend to be more optimistic than the public on economic matters. At least in the United States, the academic economist thinks very differently from the average American. There is definitely a deep disarticulation (see study).
Why does no one turn to economists for guidance on economic matters? Economics is one of those areas of knowledge where everyone thinks they are experts by intuition. But the economy itself has become an increasingly complex issue. So for the standing person the economist speaks pure nonsense and he knows much more. On the other hand, economic positions become part of the political identity of social groups. And the political identity takes roots. So, if you are on the right, you assume a talkative economy. If you are on the left, you assume a progressive economy.
Now, the vast majority of economists were in favor of the measures taken during and after the 2008 credit crisis. That is far from what we hear in YouTube documentaries. We can talk about any economic issue and there is probably a dissonance between economists and the public. In fact, economists are generally attacked from the right and the left. Why? Well, because science is science. And the results sometimes offend one side and sometimes they offend the other side.
“Bitcoin fix that” says an influencer on YouTube. And it is said categorically. There is no room for doubt or debate. In fact, it sounds obvious. It’s almost common sense. And, indeed, anyone who does not think alike is part of the conspiracy. In other words, it is the Establishment that refuses to die. The power of a phrase that eliminates the debate. How will Bitcoin solve the world’s economic problems? What are the consequences of a hard currency system? What are the costs of state non-intervention in the economy?
Read on: The Analyst Problem: Why Did The Predictions Fail?
Anthony Pompliano, it seems, studied economics. But he says he was taught a lot of bullshit in college. In other words, he is so expert that he can attest that the experts know nothing. In other words, it was inside and I can smell the garbage. Here’s what I find suspicious about your comments. Economic thinking is always updating. New studies are always coming out that refute accepted ideas. While it is true that we can turn to statistics to find out what most economists think at any given time, it is also true that each economist is a thinking individual seeking to give their input.
Economics is more of a method of coming to knowledge than a list of predetermined beliefs. The so-called economic creeds are a form of political propaganda. Austrian School follower: That actually means you’re a libertarian. Keynesianism: That actually means you are progressive. But economics as such is science, not politics. In my opinion, Anthony Pompliano is more liberal than economist.