THE CASE AGAINST BITCOIN’S INFLATION NARRATIVE

What do Peter Schiff, gold bugs, the financial media and many bitcoiners have in common? It is the shared belief that "money printing" is to blame for many, if not all, of the increases in price that plague our economy. While it cannot be argued that prices are increasing in certain areas such as in housing, stocks, bonds and lumber (albeit temporarily), I believe the source of those price increases comes from a different place than what most people tend to assume.

Over the past few months, I have been collecting information related to the topic of inflation and would like to use this opportunity to share my findings with the Bitcoin audience in particular. We will use this missive to try and identify the types of things one would expect to see in both inflationary as well as disinflationary/deflationary environments. We will also try to uncover some of the culprits that are most responsible for the increase in asset and consumer prices post–Global Financial Crisis (GFC).

Within the Bitcoin space, there are two topics that are guaranteed to get you positive attention. One is to promote the inflation narrative and the other is to promote bullish price momentum. Many of the articles that cover the aforementioned topics can be boiled down to mere cheerleading and often tend to lack substance in my opinion. Even though this missive will be covering the topic of inflation, it will actually be providing support for an alternative view than that which is most popular. This article may seem a bit long to most readers but not to worry, it is just as chart heavy as it is word heavy and the charts and illustrations we will be using will be helpful for our analysis.

Source:bitcoinmagazine.com