How to Reduce the 2020 InflationJuly 27, 2021 by Juan
Inflation surged in the second half of 2021 as the effect from the Covid which began in Q1 of 2020.
Covid forced the world to go on lockdown. Without a normal economy going, people started buying cryptocurrencies and NFTs with their savings (retail money). This caused a surge in the crypto prices. The money that was supposed to go to circulate the real economy was funneled into a virtual casino that inflated crypto prices without producing any real utility.
This is similar to quantitative easing money (wholesale money) being used to inflate stock prices.
With both wholesale and retail money going into non-production, output falls, causing inflation.
The Solution: Ban Crypto
To bring back money into productive uses, crypto mining and transactions must be banned in countries experiencing inflation. This is because the only productive labor that crypto mobilizes is that of blockchain developers, which we classify as ‘ value-adding skilled immaterial effort ’.
What will happen to blockchain developers?
The government can force such developers and marketers to register in a government database, as a blockchain professional, in order to allow them to receive payments in crypto. In this way, blockchain development is selectively allowed in a similar way that weapon-making is.