joenakamoto (nprofile…x32y) BitcoinFilmFest (nprofile…lh3f) Are Bitcoin circular economies overhyped? 🤔
Whenever I reflect on this topic, Gresham’s Law immediately comes to mind. This fundamental monetary principle observes that “bad money drives out good money” from active circulation. Because fiat currency feels endless and functions adequately until a government fails, people naturally choose to hoard Bitcoin instead.
To craft an effective business narrative that encourages customers to spend their Bitcoin, I would offer a compelling value proposition: given a projected 10% annual inflation rate on my products, paying in Bitcoin unlocks a 15% discount, effectively passing on the value of inflation plus interest.
This approach would foster greater awareness among my customers regarding their financial choices, helping them recognize what they truly value, such as transactional freedom and the protection of their purchasing power.
A few more academic perspectives, as far as I understand it. From an Austrian perspective, Carl Menger established that goods and money possess no intrinsic value; their worth is determined subjectively by individual wants and needs. Friedrich Hayek expanded on this by demonstrating that prices function as a decentralized communication network coordinating dispersed knowledge across society. Offering a 15% discount for Bitcoin payments against a projected 10% annual inflation rate uses the price mechanism directly.
Keynesians view saving and hoarding as a direct drag on economic activity. Under the paradox of thrift, if market participants hoard an appreciating currency rather than spending it, aggregate demand contracts, business revenues drop, and unemployment rises. From this viewpoint, a currency must continuously circulate to sustain employment.
P.S.: I am not an economist; much of my current understanding comes from common sense reasoning and reading “The Genesis Book”
( thegenesisbook.com ) mainly the chapter 1, Spontaneous Order.
nixb
npub122…nwvet
2026-11-02 07:36:23 UTC
in reply to nevent1q…m8sm
Author Public Key
npub122z4r6mdw8nuhk4wn88c0c2yhpu7wrelt72c8p9e87xkjs7qc27qtnwvetSeen on
wss://nos.lolPublished at
2026-11-02 07:36:23 UTCEvent JSON
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