Universities, especially when it came to economics used to be respectable institutions. They used to be places where the best and brightest would gather and further increase their knowledge and capabilities for four more years.
Recently all the prestige and reputation is evaporating faster than the value of the US dollar. Nowadays universities have evolved into debt farms which chain young students with insurmountable debt.
Combined with the indoctrination and forced adoption of socially acceptable viewpoints, universities have rightfully lost most of their credibility. Adding even more confusion to the mist is the fact that many college professors spread questionable views, which are easily debunked by logic and sound arguments.
A bright example would be the Keynesian economics professors.
Keynesian economics will always be easily debunked with logic and common sense
Earlier this year Robert Skidelsky, a professor of Political Economy at Warwick University wrote an article against Bitcoin. In defense of central banking he said:
“The fact is that human societies have discovered no better way to keep the value of money roughly constant than by relying on central banks to exercise control over its issue and to act directly or indirectly on the volume of credit created by the commercial banking system.”
Now anyone who has access on the internet and has taken 7th grade economics can see that the only constant thing about fiat currency is that they decline in value. For a little over a hundred years the US dollar has lost 99% of its value.
Ironically enough, if the value remained “constant” a gallon of gasoline would cost around 20 cents today. Money is defined as a medium of exchange and this is quite literally what Bitcoin and other cryptocurrencies are used for.
The next claim which could be easily debunked states that:
“Bitcoin will be ‘mined’ in diminishing quantities until it’s exhaustion in 2040, having delivered 21 million digital coins. In other words, there is no elasticity in the currency. It will run into the same problem as the gold standard: not providing enough money to support a growing economy and population.”
Now it’s pretty much impossible to say when the last Bitcoin will be mined, but 2040 is without a doubt too soon. The Keynesian myth of “there is never enough money” has been debunked countless times, by countless economists. In order to establish full control over the issue of currency however, it’s important that this lie is maintained. The exact same opera was performed exactly before the last financial crisis.
Unlike gold, bitcoin is just the name of a digital unit. The value of this unit is determined solely by the market. This would make it highly divisible. Additionally the smallest possible unit is called a “satoshi” and it’s one hundred millionth of a bitcoin (0.00000001 BTC). That makes it possible to send a tiny fractions of a penny in the current market prices. This cannot be done by digital fiat let alone physical money or coins.
As we go on we’ll see that Skidelsky mentions that cryptocurrencies provide no protection against inflation.
Since its creation in 2009, Bitcoin has been the best bet against monetary inflation. The monetary supply of Bitcoin is finite, remains transparent and cannot be centrally governed. This makes blockchain technology the best innovation in money yet.
Skideksky will also advice young people to:
“Stop trying to reinvent the monetary wheel with Bitcoin”
Now everyone is entitled to their own opinion. A problem starts to emerge when people who shape the minds of the next generation are in denial about the actual state of the world. A sandbox like approach is not the way to prepare young people for the real world.
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Tags:bitcoinCentral BanksCryptocurrencieskeynesian economicsMoneypolitical economyRobert SkidelskyUniversity