Part 2: David Andolfatto, An Overview of Bitcoin

The doublespeak of Federal Reserve VP Andolfatto

A couple days ago, Fed VP David Andolfatto gave a presentation on Bitcoin. It was generally hailed as "fair and balanced" by observers.
Yet, we cannot let people in positions of power get away with nonsense such as the following, taken from a Bloomberg article today:
"Andolfatto said today the Fed has provided a fairly stable currency for 100 years and “passed the market test.” The value of Bitcoin is prone to swings because a central authority can’t issue more supply in times when demand for money soars, such as in a financial crisis, he said."
This is absurd.
First, anyone who thinks the Fed has provided a fairly stable currency for 100 years needs to read this:
TLDR - the dollar was stable for 150 years pre-central bank. Then central bank was created "to stabilize the value of the dollar" and over the next 100 years the dollar has lost over 96% of its value. That is a big fat fail.
Second, the Fed cannot be said to "pass the market test" because it is the antithesis of a market. Central banks are a replacement for the market of money and interest. Central planning by governments is the opposite of markets. The only test the Fed has passed is the scorecard it gives itself.
And third, related to Bitcoin specifically, its volatility is most certainly not due to the inability of a benevolent central bank to to print more of it. Its volatility is due to A) small market size, B) the fact that it's new and experimental and C) a sensationalist narrative. Time soothes all three of these, and Bitcoin will slowly earn stability in the marketplace (as opposed to achieving it through the coercion of government) .
The dollar's superficial stability (which only appears stable over the short term, as it loses value continually over time) is not due to central bank omnipotence, but rather to market size. And indeed, it was far more stable before the Fed existed (this was mostly due to the "dollar" being just the name for an amount of gold).
Andolfatto is engaged is doublespeak and fallacy, suggesting the opposite of the truth: that money is flawed to the extent it cannot be debased.
Now that Bitcoin exists, this kind of economic witchcraft will fade, and the world will see which currency is real, and which is virtual.
Bloomberg article:
submitted by evoorhees to Bitcoin [link] [comments]

Global Economy Forecast

Greece will default on their EU creditors because they know that they have a Russian safety net. After Russia helps Greece become a sovereign state, Russia will request that Greece votes to repeal the economic sanctions against them. Greece has every reason to default, knowing Russia has their back and Russia has every reason to have Greece's back. Win-Win for both countries. Complete loss for the EU.
The Greece debt is listed as an asset because the creditors expect to be paid back. That 323 billion euro debt must be absorbed by the creditors and now that asset becomes a liability. How will this effect the European Market?
DAX German Stocks
FTS Eurofirst 300 Index
DAX is higher than it was before the 2008 crash.
I couldn't find any sources of the FTSE Eurofist 300 Index that went back beyond 5 years. However, even within that limted timeframe, the FTSE index is in uncharted territory.
Point being : European stocks are in a bubble. When Greece defaults, that backlash will hit the European economy. The question is, where do Investors go to find a safehaven for their money during a financial crisis?
submitted by Xeagu to Bitcoin [link] [comments]

[uncensored-r/Bitcoin] Ramifications of a fixed money supply,

The following post by LineupKings is being replicated because some comments within the post(but not the post itself) have been silently removed.
The original post can be found(in censored form) at this link: Bitcoin/comments/7nmxs4
The original post's content was as follows:
imho a fixed money supply would decrease demand for money over time since no new money is being created. It would also encourage individuals into becoming value creators for a sustainable (fixed/maintained/sustained) society. With a fixed supply of currency, the wealth flows increasingly to those who are value creators as determined by the demand of the rest of humanity with 100% employment in the long run.
In response to "As David Andolfatto crisply points out, a money supply rule that does not respond to shifts in money demand generates large fluctuations in prices. And since society tends not to tolerate outright declines in wages, these fluctuations often carry over into unemployment." from the article - "The consequences of allowing a cryptocurrency takeover, or trying to head one off" found at the Financial Times website
submitted by censorship_notifier to noncensored_bitcoin [link] [comments]

Interview with David Andolfatto, Economist at the Federal Reserve Bank of St. Louis David Andolfatto, How Does Bitcoin Work? - YouTube David Andolfatto, Bitcoin and Beyond, Conclusion David Andolfatto, Legal and Illegal Trading of Bitcoin ... David Andolfatto, How Big Is Bitcoin, and Is It Stable?

In a recent article, the Federal Reserve Bank of St. Louis has reportedly predicted the future of Bitcoin.The authors David Andolfatto and Andrew Spewak stated that the lower price of Bitcoin can be linked to the ever-growing supply of the altcoins. Tagged: david andolfatto St. Louis Fed Says Flood of Altcoins Competing with Bitcoin Likely to Place Significant Downward Pressure on All Cryptocurrencies January 15, 2019 @ 3:08 pm By JD Alois Andolfatto then briefly explains some of the benefits and drawbacks to virtual currency. So, how big is the bitcoin realm? Currently, there are about $7 billion bitcoins in circulation worldwide, compared to about $1.2 trillion in U.S. dollars. David Andolfatto: So good evening everyone. Ladies and gentlemen, it's a great pleasure for me to be here tonight to speak to you on the subject of bitcoin and on the nature of these virtual currencies, this virtual currency revolution that's upon us and what it portends in the way of the evolution of our money and payments system. The Bitcoin development ecosystem is one concerned with hard science of cryptography, system engineering & computer science. A very healthy meritocracy. You forgot to include economics (more precisely, game theory). :) More importantly that is achieved in absence of any counterparty risk whatsoever. Well, this is an assertion that may or may ...

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Interview with David Andolfatto, Economist at the Federal Reserve Bank of St. Louis

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