Bitmex to VIPs: Economics Fundamental Difference, ‘Naïve’ Enthusiasts
Bitcoin Mercantile Exchange has released a report on a research they conducted on their VIPs. Researchers have described bitcoin core (BTC) as a “useful niche” and they call “naïve” all those who “think Bitcoin would result in a more prosperous economic system.”
Bitmex researchers are sluggishly admiring bitcoin core’s merits. They argue how “too many, Bitcoin’s ability to decouple debt from money and thereby result in a deflationary climate without the deflationary debt spiral problem is the point, rather than a bug.”
It was recently published by Bitcoin Economics – Deflationary Debt Spiral, that the exchange for its VIPs refers to those who believe bitcoin “would result in a more prosperous economic system” as being “naïve.” They kept on going by saying that, “Bitcoin is a new and unique system, which is likely to cause more economic problems, perhaps unexpected or new ones.”
Bitcoin Mercantile Exchange (Bitmex), based in Hong Kong, has produced a three-part series, which Bitcoin Economics – Deflationary Debt Spiral is the final. Hot shot, risk enticed futures traders are encouraged by the exchange’s shorting ability and 100x leveraged contracts. You can only use BTC for purchase and settlement of contracts, without bothering of holding actual coins. Bitcoin cash, bitcoin core, ripple, ether, litecoin, cardano round out possible contract choices.
A grouchy Twitter polemicist released the report for the first time and also claimed it to be an exclusive get, designed for Bitmex’s VIPs. The exchange published it days later on their site for everyone’s benefit. The focus of the report was to “examine the deflationary nature of Bitcoin and consider why this deflation may be necessary due to some of Bitcoin’s weaknesses.”
Researchers explain in their report that “critics have argued that history has taught us that a finite monetary supply can be a poor economic policy, resulting in or exacerbating, economic crashes. Either because people are unwilling to spend appreciating money or because the real value of debt increases, resulting in a highly indebted economy. Bitcoin proponents are often called ‘economically naive,’ for failing to have learned these economic lessons of the past.”
It is Bitmex belief that economics in the context of BTC is “fundamentally different” from anything preceding. They argue that “there may be unique characteristics about Bitcoin, which make it more suited to a deflationary policy.” “Alternatively, limitations or weaknesses in Bitcoin could exist, which mean that too much inflation could have negative consequences not applicable to traditional forms of money.”
