[nfin]

With fiat money the cantillon effect [1] plays a big role.

In Bitcoin (fixed supply cap) that part is very very different.

One big difference is that fiat/political money (political because political decisions decide how money is created and spent first before it inflates and arrives to the rest of the population).

Like El Salvador: they use the Dollar. But do they get some of the newly (for free) created trillions? Or do they only see the consequence of that money, meaning seeing their money inflated away… their part of the pie stays constant while the rest of the pie got inflated/bigger.

[1]: just google “cantillon effect”. It is interesting (the power is not only in the hands of the money holders but also in the political decision makers and those who have good relationships with them… a bit like it used to be with religion and the state… but now still with money and the state)

[FabHK]

Do you have any evidence that the Cantillon effect plays any significant role?

I hasten to add that BTC currently experiences money supply growth of 1.7% p.a. (though of course BTC inflation has approached 100% in the last half year).