Four misunderstandings of digital currency -Part 4

Si Gyeongmin

Oct 14, 2021

For thousands of years, regardless of economic decline or prosperity, the economy and society have always been able to find the currency forms and their institutional arrangements that are compatible with them—even if they are all weird. This often comes from the actual needs of society and the economy itself. External designs or deliberate arrangements that depart from or exceed the actual needs, no matter how ambitious the currency concept or how pious the currency vision, will ultimately fail. There has never been a savior, no fairy emperor, no so-called money prophet, not only in the form of money, but also in the amount of money. In theory, this is highly abstracted as "money supply is an endogenous variable determined by money demand". It is this iron law that has been repeatedly demonstrated by the various changes in the history of money, that is, demand is first, supply is second, and technology serves supply. This is the reason why paper money is nearly a thousand years later than papermaking.

Technical rationality cannot defeat demand rationality, and there is no way to become immortal at all, and digital technology is definitely not a monetary "alchemy."

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