Why do I agree w/ #CharlieMunger? Crypto supply isn't regulated by govt. How much of our inflation bubble was caused by massive unregulated infusion of weird M2 infusions of bitcoin into the economy? And how much recession fear is from an unregulated bust? fortune.com/2023/02/02/ban…
#M2= Money in circulation on Federal Reserve statistical tables. The Federal Reserve uses the indicator to control of the supply of money. #Crypto wreaks havoc with the reliability of this number. On the front end, it created explosive growth that helped trigger inflation. (2)
On the back end, with the #CryptoCrash, it helped to cause an un-measured contraction in the supply of money (M2). Are you happy that a chunk of this key economic tool is now in the hands of con artists, gamblers & dark money launderers? (3)
Another problem w/crypto: it makes taxpayers pay more taxes. When govt prints bills that aren't replacements, the face value of the bills, less costs, belongs to the govt & is used to reduce taxes & debt. It's called seignorage. If crypto prints electronic bucks, who wins?(4)
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