Another fallacy told by Bitcoin Cash critics is that the best form of money is the one currently in use, as if we have reached the pinnacle of our evolution and there is nothing more to achieve. Ironically, this short-sighted view of economics is in line with their Keynesian/monetarist studies, in which time is not a variable taken into account. Why? Because that would mean admitting that all the static mathematical constructs on which knowledge of mainstream economics is fundamentally based should end up in the dustbin of history. And with it also the justification for the way in which the governments manage to collect scarce economic resources that otherwise they would have no way of acquiring. Deficits, inflation and taxes are the means by which governments survives and thrives, that is, all means that involve the use of violence. In this sense the Austrian School offers a different point of view.
But without going into the technical merits of the evolution of money, given that arbitrariness in its creation would mean diminishing marginal utility, just think that this way of thinking is the same as for counterfeiters. Those who want to "defraud" governments and the rest of the population by competing with the official currency, mass-produce new monetary units to acquire goods and services by turning to an old adage of human life: getting the most with the least effort. This mentality, of course, is fostered by seeing what governments do and how they obtains resources. Production is discouraged through a growing tax burden, overwhelming bureaucracy to create cronies and price inflation which increases everyday costs. There is another factor overlooked in this context: the consumption of capital.
Arbitrarily reproducible money artificially stimulates consumption, because it is much easier to acquire more means of exchange with which trade goods and services. This facility is further encouraged by legal tender laws, which don't serve to make a certain kind of money official but to outlaw any competitors. Bitcoin Cash, on the other hand, doesn't reward those who are simply able to push a button and create digits, but those who can solve certain mathematical problems through the use of tools and machinery. Simply put, you need proof of a job to prove to everyone that you have done it and are entitled to claim a new monetary unit. The "history" of POW is included in the blockchain, which in this sense represents an immutable and practically impossible to falsify register. The decentralization of the process of discovering new monetary units and interaction of the various peers, combined with elements of cryptography, represents a gigantic counterbalance to fiat money.
If the current form of money, as BCH critics say, is the best ever, why is the market looking for alternatives? It would not make sense. Or at least, it wouldn't make sense for those who ignore the foundations of the Austrian School and therefore praxeology. Consequently, it is reality that is wrong, not the deranged theories of the critics. Fiat money is by no means harmless, it has far-reaching and seriously damaging economic and social consequences that extend beyond what most people imagine. Fiat money is inflationary: it benefits a few at the expense of many; causes boom/bust cycles; leads to excessive indebtedness. Fiat money corrupts society's morals and will most likely eventually end up in a large-scale depression.
The arbitrary issuance of money stealthily moves resources out of the hands of many and puts them in the hands of governments and their cronies: the banking and financial sector, large enterprises, state employees, recipients of governments contracts, etc.
The state's monopoly on the production of fiat money allows it to immensely increase its financial power at the expense of consumers' and entrepreneurs' freedom. It is by no means an exaggeration to say that fiat money paves the way for the so-called Deep State and ultimately towards a totalitarian state.
It is therefore worth repeating once again a fundamental point: arbitrarily reproducible money benefits some, in particular governments and their cronies, to the detriment of many others. You should not fall victim to the belief that the widespread use of fiat money testifies to its voluntary acceptance. In a world where states have monopolized the production of money, monetary competition is suppressed and people are forced to use fiat money.
Read here part 1 of this series of essays: https://read.cash/@Melis/mythbusting-on-bitcoin-cash-1-deflationary-money-is-bad-c37cf5a3
Read here part 3 of this series of essays: https://read.cash/@Melis/mythbusting-on-bitcoin-cash-3-there-is-no-inflation-88a74b1a
