2. Bitcoin monetization scenarios and financial crises

USD $10.00

If Bitcoin were to indeed become a global money, how would that come to be? This paper argues that bitcoin is unlikely to cause hyperinflationary collapse in credit money, because its continuous growth would likely reduce the creation of credit. This paper considers the possibility that bitcoin’s growth would be a more orderly technological upgrade that allows for the demonetization of debt and widescale reduction of indebtedness. The paper then discusses how bitcoin’s monetary properties make it likely to behave in various types of financial crises. (15,065 words).