Learn About Money, Bitcoin and Decentralized Finance
Inflation is defined as the increase in the money supply in an economy. It derives from the Latin word inflate, meaning, “to blow up.” When the money supply grows faster than the amount of goods and services in an economy, prices usually increase.
According to Ludwig von Mises, the boom of the “Roaring Twenties” was the result of the US Federal Reserve Bank and its policy of easy credit. When it became obvious that the economic boom was built on sand, the economy crumbled.
We are used to money being issued and controlled by the state – but if we look at its history we see that money originates from the free market. Without money, a reasonable division of labor would not be possible.
In this series, Aaron Koenig introduces you to the Austrian School of Economics in an easily digestable way. You don't need to be an economist nor an Austrian to understand what Bitcoin has to do with this school of thought, which was founded in Vienna in the 19th century.
Ludwig von Mises' theory of business cycles does not only deliver a logical proof of this, he also correctly predicted the economic crisis of 1929. According to his theory, the boom of the “Roaring Twenties” was caused by cheap loans issued through the US Federal Reserve System, which was founded in 1913. When investors discovered that this boom did not correspond to real value being created, it collapsed.
The individual and its actions are at the center of Austrian Economics. Austrians frown upon the habit of economic schools to squeeze human action into abstract mathematical models.
In this series, Aaron Koenig introduces you to the Austrian School of Economics in an easily digestable way. You don't need to be an economist nor an Austrian to understand what Bitcoin has to do with this school of thought, which was founded in Vienna in the 19th century.