The Cantillon effect is often cited as one of the causes of cash volatility. Will Bitcoin and the introduction of the Nakamoto effect solve it?
, emerged, with the system going online in January 2009.
The Biflation effect is a form of the Cantillon effect. It occurs when the central bank pumps money into the economy to reinflate asset prices during a period of debt deflation . Despite the central bank's efforts, beneficiaries of freshly produced money prefer to spend it on commodities and other associated assets rather than fighting the ongoing deflationary trend in debt markets.
According to the Cantillon effect, the first recipient of a new money supply has an arbitrage chance to spend money before prices rise. This is partly because new fiat money is created at near-zero cost and distributed to particular parties, most commonly banks. These banks can use this money to buy products and assets whose prices have not yet risen due to the increase in the money supply.
Almost all of the fiat currency currently issued goes to banks and the government first. This is the case because central banks like the Federal Reserve back big commercial banks like JP Morgan and Citi. Central banks have “printing presses,” that allow them to “print” a limitless number of their own fiat currency into circulation.
The Bitcoin system eliminates lobbyist influence and the benefits of knowing the right banker, putting everyone on an equal footing. Every 10 minutes, every miner on the Bitcoin network has an equal chance of winning a reward of newly produced BTC.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Disneyland mandates vaccines for employees but not guestsThe mandate is set to take effect March 28.
Baca lebih lajut »
19 First Alert Weather Day: Wind Chill Advisory in effect overnight; wind chill may dip to -15°The wind chill (or “feels-like” temperature) may dip down to 15 degrees below zero.
Baca lebih lajut »
Court Throws Pennsylvania's Mail-In Voting Law Into DoubtA statewide court declared Friday Pennsylvania's expansive two-year-old mail-in voting law is unconstitutional, agreeing with challenges by Republicans.
Baca lebih lajut »
Coffee Consumption Has Stimulating Effect on Digestive Processes, New Review Says | Sci-News.comA new review of previous studies, published this week in the journal Nutrients, shows that coffee intake stimulates gastric, biliary, and pancreatic secretions, seeming to favor the first steps of the digestive process.
Baca lebih lajut »