imho a fixed money supply would decrease demand for money over time since no new money is being created. It would also encourage individuals into becoming value creators for a sustainable (fixed/maintained/sustained) society. With a fixed supply of currency, the wealth flows increasingly to those who are value creators as determined by the demand of the rest of humanity with 100% employment in the long run.
In response to "As David Andolfatto crisply points out, a money supply rule that does not respond to shifts in money demand generates large fluctuations in prices. And since society tends not to tolerate outright declines in wages, these fluctuations often carry over into unemployment." from the article - "The consequences of allowing a cryptocurrency takeover, or trying to head one off" found at the Financial Times website
by David Andolfatto and Andrew Spewak ... The bearish case is that Bitcoin's price will fall to zero, as it's an intrinsically worthless asset. We think the future price path is more likely to remain bounded between these two extremes. Consider first the bullish case for Bitcoin. David Andolfatto: So good evening everyone. Ladies and gentlemen, it's a great pleasure for me to be here tonight to speak to you on the subject of bitcoin and on the nature of these virtual currencies, this virtual currency revolution that's upon us and what it portends in the way of the evolution of our money and payments system. About 40 transactions happen per minute, compared to about 200,000 Visa transactions per minute. However, the average bitcoin transaction size is about $2,000, compared to about $80 in the average Visa transaction. While it's relatively small now, there is potential for growth. Andolfatto then discusses the trends concerning the price of bitcoin. Many people think of Bitcoin as the ultimate contender against the power of central banks, most importantly the Federal Reserve System. But that is certainly not the David Andolfatto: Fedcoin And The Implications Of Cryptocurrencies Issued By Central Banks - Bit2Me TV It appears that Andolfatto sees value in Bitcoin and a possible Fedcoin, and he also understands the concept of bitcoin as the new, digital gold. Why bitcoin works as a store of value. Although bitcoin has been a volatile asset over the short term, the long-term picture still shows a large amount of growth in the price since 2010.
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The price of Bitcoin is on a decline already and seems to consolidate slightly below $12.000. Is a huge Bitcoin price correction possible from this point on?... St. Louis Fed Economist David Andolfatto provides a look at the evolution of money and the long tradition of new currencies competing with old ones. Here, he also discusses the bitcoin competitors ... St. Louis Fed’s David Andolfatto: Bitcoin can be a store of value: ... Bitcoin Price Analysis for Saturday, June 13 - Duration: 6:00. Libra 47 views. 6:00. Andolfatto then discusses the trends concerning the price of bitcoin. Is bitcoin a bubble? He defines "bubble" as a liquidity premium; examined this way, bitcoin is a bubble. David Andolfatto, Legal and Illegal Trading of Bitcoin - Duration: 4:41. ... bitcoin banned countries , bitcoin price ( due to banning), bitcoin , future currency - Duration: 3:29.