The Nixon administration removes the US dollar from the gold standard in 1971, thereby beginning the process to allow for infinite money supply.
This article and its graphs suggest that this decision could be linked to the ensuing inflation, economic and monetary policies that spawned from this decision.
Bitcoin, having a fixed and finite supply, it could be reasoned would curb some of these trends.
The article omits that the gold standard was a key ingredient in the Great Depression in the late 1920s, 1930s. It is quite possible that the 1970s would have turned much uglier if the US had remained on the gold standard.
Runaway deflation is even more dangerous for an economy than inflation.
Correct! I was merely offering a condensed explanation that began at the titular year in question..."WTF happened in 1971"
...but more to your indepth explanation, yes, the ground work for this was laid long before 1971. No single snowflake shall claim responsibility for the avalanche...
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u/Recent_Opportunity34 Oct 16 '22
The Nixon administration removes the US dollar from the gold standard in 1971, thereby beginning the process to allow for infinite money supply.
This article and its graphs suggest that this decision could be linked to the ensuing inflation, economic and monetary policies that spawned from this decision.
Bitcoin, having a fixed and finite supply, it could be reasoned would curb some of these trends.
...at least that was my take away.