Will bitcoin be banned?

Bitcoin is often touted as a hedge against inflation, but it's a threat to the whole scammy system

Bitcoin in a birdcage
(Image credit: Getty Images)

The most obvious narrative for future economic historians probably goes something like this. In the early 21st century, politicians lost control of spending. Debt rose much faster than GDP. Then, inflation made it much harder for central banks to continue printing money. But as soon as inflation moderated, in 2024, they went back to their old habits – lowering interest rates and inducing more and more people to borrow and spend.

By then, lowering interest rates was no longer an option – it was a necessity. The authorities needed low rates to finance and re-finance their runaway deficits. But investors became reluctant to lend more money to a borrower who was clearly going broke. Interest rates rose and the only recourse was to print money – trillions. The result was more inflation – the defining feature of the 2024-2034 period.

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Columnist

Bill Bonner is an American author of books and articles on economic and financial subjects. He is the founder of Agora Financial, as well as a co-founder of Bonner & Partners publishing.