What Bitcoin Did

View Original

Inflation’s Hidden Cost with Avik Roy

Peter McCormack

Interview | Description | Timestamps | Show Notes

See this content in the original post

iTunes | Google | Spotify | Stitcher | SoundCloud | YouTube | Deezer | TuneIn | RSS Feed

Your browser doesn't support HTML5 audio

Inflation’s Hidden Cost with Avik Roy - WBD519 Peter McCormack

Download Episode MP3 File
The file will open in a new window. Click down arrow to download the file.

See this content in the original post

Avik Roy is president of the Foundation for Research on Equal Opportunity think tank and a policy Editor at Forbes. In this interview, we discuss the Lummis Gillibrand Responsible Financial Innovation Act, inflation’s compounding impact on the poor and why Bitcoin provides optimism.

- - - -

On June 7th Republican Senator Lummis and Democratic Senator Gillibrand introduced the Responsible Financial Innovation Act, which aims to establish a regulatory framework for digital assets in the US. Many Bitcoiners believe Bitcoin is designed to work outside of regulatory oversight. But is this proposal inimical to Bitcoin’s potential to positively contribute to society?

If Bitcoin is to play a dominant role within society, can it do that outside of the law? Irrespective of Bitcoin, should governments have a role in protecting citizens from the negative impacts of the wider altcoin market? What are the dividing lines between different digital assets? And, could the lack of regulation in the near term actually be detrimental to Bitcoin in the long run?

Bitcoin’s advocates are heavily engaged in trying to obtain regulatory clarity - they fear continued uncertainty could delay or damage its ability to provide utility to those who really need it. This is particularly for those impacted by the ravages of inflation.

The current inflationary environment has resulted in renewed consideration of this economic condition. The issue is that there is actually a deficit of understanding of inflation’s regressive impacts. It impacts the poorest in society hardest, whilst benefiting the richest. These impacts compound over time such that inequality explodes even in low inflationary environments.

Does this mean inflation as a policy is a busted flush? Should economies aim for zero inflation? These are radical policy shifts that are unlikely to happen anytime soon. This is why Bitcoin provides some with optimism: it’s trying to be the hardest money the world has ever seen.

See this content in the original post

00:03:22: Introductions
00:05:24: FREOPP newsletter
00:11:08: Lummis-Gillibrand Digital Asset Bill
00:28:10: Securities, ancillary assets and commodities
00:34:58: Process and timescale for passing the legislation
00:44:00: Inflation inequality
00:51:25: Calculating the real CPI, and the growing wealth divide
00:59:58: A real cost of living crisis, and the Fed's view of inflation
01:05:08: The real impact of minimal wage rises
01:09:10: The Great Resignation
01:12:05: Is inflation necessary, and the consumerist culture
01:19:14: Near-term vs long-term monetary policy
01:22:46: Benefits of Bitcoin investment for all classes of society
01:27:53: Impact of inflation inequality on all classes
01:33:09: Reasons to be optimistic
01:35:41: Final comments

See this content in the original post

SUPPORT THE SHOW

If you enjoy The What Bitcoin Did Podcast you can help support the show by doing the following:

If you are interested in sponsoring the show, you can read more about that here or please feel free to drop me an email to discuss options.

SPONSORS

See this content in the original post

Connect with Avik:

Read the Article:

Mentioned in the interview:

Other Relevant WBD Podcasts:

See this content in the original post