Modern Monetary Theory Versus Bitcoin

A future Great Monetary Divergence

Mike Co

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Today there are two powerful economic theories emerging: Modern Monetary Theory and Bitcoin.

While the core political conversation is still shackled to the rudimentary yet perpetual debate of Left vs. Right economics:

Two emerging and extreme theories are reframing the existing economic conversation as we know it. Modern Monetary Theory is the thesis and Bitcoin is the antithesis. However, both Bitcoin and MMT are united in their dedication to evolving the conversation beyond the intellectual prison of traditional liberal vs. conservative economics.

As discontent with the current political economy grows, the extremities grow heavier, threatening to break or change the framework as we know it. And as with any topic in the Modern Age, both topics are prone to high degrees of speculation, distortion, and mass confusion. Resulting infamy and hatred by any external political tribe goes on to feed that topic’s popularity and therefore power.

To add to the complexity, a Gordian knot pulls tight between the two as both MMT & BTC have tribal subsets fighting within to dominate primary definitions of their subjects. In other words, both are hives of animosity and groupthink as one prominent MMT scholar refers us to the original definition:

Communities of scholars working within a dominant culture, which provides its members which a sense of belonging and joint purpose but also renders them oblivious and hostile to new and superior ways of thinking.

While the common definition of Modern Monetary Theory is that “A country cannot default on debt denominated in its own currency”, some early proponents of MMT have outright rejected this core tenet. The problem is that many of these MMT supporters’ proposals are fairly rational when it comes to the specifics, but a larger public dialogue metamorphizes MMT into something unrecognizable. Bill Mitchell, another authority on MMT, goes on to claim that Modern…

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