While the ‘mainstream’ global economy is struggling with deflation and negative interest rates ‘insanity,’ bitcoin seems to be entering the stage as an answer to economic problems, an expert has told RT.
“Bonds are a bubble,” Australia-based bitcoin podcaster Stephan Livera told RT’s Keiser Report, stating the same about fiat money and even overvalued stocks. He claims the only thing that’s not in a bubble is bitcoin.
“Bitcoin is the answer to these bubbles. They offer cheap and available credit opportunity, while under the hard money such as the gold or bitcoin standard, we would see much less credit available and more of a true pricing,” Livera explains, noting that this is the major advantage of bitcoin in the long run, when people want to see their wealth safely stored and not easily wasted.
Livera is an adept of the Austrian school of economics, which states that prices are distributed by subjective factors like a person’s preference to buy or not to buy a particular good. He says bitcoin is the money of the future, which will help eliminate the trouble with existing mainstream economics – over time.
“From an Austrian economics point of view, one can explain why fixed money supply is not necessarily a problem, and why problems like deflation and so on in the mainstream economics point of view are not such a problem within the Austrian economics. I call it the bitcoin Austrian perspective,” the expert said.