When Square boss Jack Dorsey talked about hyperinflation, the world listened. Twitter reacted. Now the so-called advanced economies have felt the pain caused by inflation, and this concept is in everyone’s mind. Everyone has a front row seat to witness the consequences of the ruthless US printing of money. Moreover, since the U.S. dollar is still the world’s reserve currency, they all feel it too.
This is a tweet from Jack Dorsey:
Hyperinflation will change everything. Is happening.
— Jack ?? (@jack) October 23, 2021
As you can see, he is not just talking about inflation. He was in favor of “hyperinflation”, which caused adverse reactions in the replies and quoted tweets. They accused him of spreading fear and quoted his official figures. Opponents may make sense here, because the United States is far from the reality implied by this term. However, one thing is certain: the money printing machine is broken… and it has not stopped working since the Covid attack.
Negative and mild reactions to Jack Dorsey’s tweets
This is an example of an unnecessary insulting response from a traditional financial officer.
2/ Taking a step back, it is disturbing that many of the most powerful financial figures/oligarchs are literally and figuratively invested in various hawker schemes and liberal fantasies of the collapse of nations and civilizations.
— Josh Marshall (@joshtpm) October 23, 2021
This person obviously did not do his homework on Bitcoin, so his argument is invalid. And there is no need to respond. In addition, he was insulted in order to attract attention, which he got. Therefore, it is good for him and his dopamine level. Let us hope that he can live happily in poor days.
This is a gentle answer from a Venezuelan economist to Jack Dorsey.
I don’t think so. But things don’t need to happen to become ugly. https://t.co/Cj85mJ8o7x
— Eduardo Gavotti (@EduardoGavotti) October 23, 2021
Since Venezuelans have first-hand experience with hyperinflation, let us consider what he said. The United States is just feeling the effects of inflation. The so-called developing economies are burdened with this concept all the time.
BTC price chart for 10/23/2021 on Bitstamp | Source: BTC/USD on TradingView.com
Informational reaction to Jack Dorsey’s tweet
Alex Gladstein of the Human Rights Foundation is a notorious Bitcoin extremist, he told Jack Dorsey.
Those shocked by this tweet live in a bubble of financial privilege.
*1.3 billion* living under double-digit, three-digit or four-digit inflation: Turkey, Nigeria, Ethiopia, Iran, Lebanon, Venezuela, Cuba, Sudan, etc.
This is already one of the biggest humanitarian crises in the world. https://t.co/P83opDagdu
— Alex Gladstein? ? (@gladstein) October 23, 2021
He did not lie. Hyperinflation is “It is already one of the biggest humanitarian crises in the world.“However, the United States is away”Turkey, Nigeria, Ethiopia, Iran, Lebanon, Venezuela, Cuba“And the situation in Sudan. Moreover, since the U.S. dollar is still the world’s reserve currency, they have a comfortable buffer to resist the effects of continued printing of money.
Serial entrepreneur and former Coinbase CTO Balaji Srinivasan answered Jack Dorsey with a mature idea. A sort of”Anti-censorship inflation index.“
I wrote a specification for the censorship-resistant inflation index. It is designed for startups, but Square can easily do this. In a crisis, accurate inflation information will become what people check on Twitter every day. @Milessuter @moneyball @Jack https://t.co/SYb2mfxjex
— Balaji Srinivasan (@balajis) October 23, 2021
In this project, he put forward some serious facts:
“If inflation is a problem caused by the government, we don’t necessarily rely on government statistics, such as Consumer Price Index Diagnose or fix it. In fact, in places with high inflation rates, censorship and denial are the rule rather than the exception. “
If you have the technical ability, you still have time to send your proposal and earn “$100,000 bonus on decentralized inflation dashboard. “Aware”If you use Chainlink’s oracle technology in your project, the best dashboard will be eligible for a $100,000 LINK token grant.“These tokens are in addition to the main prizes.
Insufficient understanding of terminology
The infamous podcast Preston Pysh concluded in a Twitter space room dedicated to Jack Dorsey’s tweets.
“I think people’s understanding of terms such as deflation and inflation is seriously misunderstood. Therefore, when you say that we will have these deflationary events, then it will lead to more quantitative easing policies, which in turn leads to more inflationary events. I I totally agree with you, but we are talking about deflation and inflation as a simple word that will lose a lot of information. So a deflation event is that the entire system is built as credit.”
When he said quantitative easing, Preston was referring to quantitative easing, that is Investopedia definition As:
“An unconventional monetary policy in which the central bank purchases long-term securities from the open market to increase the money supply and encourage lending and investment. The purchase of these securities adds new funds to the economy and can also lower interest rates by raising fixed-income securities. ??”
Related Reading | Jack Dorsey plans to build a decentralized exchange for Bitcoin
Having said that, Preston asked:
“How many people in the United States or the world have this kind of background, but that’s not their expertise, right? They don’t have degrees in macroeconomics, finance, or other majors. So, this is just a buzzword that people talk about everywhere. And, at the same time, no one even really understands what these definitions represent.”
For more information Inflation, look at the Bitcoin Book Club “Bitcoin Standard” analysis by Saifedean Ammous.
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