Bitcoin community not happy with Peter Zeihan’s criticism in Joe Rogan’s podcast

Peter Zeihan, a geopolitical thinker, as a guest of the Joe Rogan podcast, argued why Bitcoin has no intrinsic value and is going to zero. These are statements that the Bitcoin community will not let pass easily. If you’re going to make that kind of claim, you have to come up with good arguments.

Zeihan’s arguments

According to Zeihan, the absolute scarcity of Bitcoin is the main reason it will never work as money. “The most insane thing about Bitcoin is that it never gets more than an ‘X’ amount in circulation. That means it is by definition not suitable for trading,” said Zeihan. You can see from that statement that it is very difficult for Zeihan to think outside the existing frameworks.

With a currency that has an absolute scarcity of 21 million units, you would naturally get prices falling. You can use Bitcoin for trading, but instead of inflation you get deflation. In a society with a currency of absolute scarcity, it pays to save.

In the current financial system, people who save well are punished. You can debate the pros and cons, but the current system is not clearly better. Certainly not for the planet. In the current system, people are forced to spend their money as quickly as possible because it loses value. Under a Bitcoin standard it would be the other way around.

You need more money

Zeihan also made the argument that “the whole idea of ​​economic activity is that there is expansion, which means you need more currency to sustain that expansion.” That all sounds great, but why would you necessarily need more currency for that? You can also do it with the same amount but pay less for that expansion. Now the money supply is also clearly growing faster than the expansion of the economy, because we are dealing with gigantic inflation.

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That cannot be the intention. Deflation is a nightmare for many economists, but in principle there is nothing bad about it. Economists fear that people will stop spending when prices fall, but of course that is not the case. The proof is in technology. You will probably buy the phone you have today for less money next year. However, that doesn’t mean you necessarily have to wait a year to buy that phone. You buy it now, because ultimately you also have a limited amount of time. You have to enjoy it now.

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