What is the Marxist stance on Gresham’s Law? Bad money pushes out the good. Obviously not the same thing in terms of currency debasement, but it’s like, your retirement index fund is now competing with the latest influencer-backed tulip mania hypecoin.
Cryptocurrencies are a form of bad money due to their speculative nature and lack of intrinsic value, and these assets will drive out more stable and productive forms of investment. Allowing retirement funds to invest in crypto exposes workers to short-term speculative investments, undermining the whole purpose of retirement funds.
Neither the dollar nor crypto have any commodity value, so I’m not sure Gresham’s applies here. I’d tie this closer to fictitious capital and the scramble over the rate of profit declining.
I’d also hope that retirement funds were managed to chase consistent if low returns over aggressive growth assets with high volatility like crypto, but who knows what finance bros are smoking/snorting these days.
What is the Marxist stance on Gresham’s Law? Bad money pushes out the good. Obviously not the same thing in terms of currency debasement, but it’s like, your retirement index fund is now competing with the latest influencer-backed tulip mania hypecoin.
Cryptocurrencies are a form of bad money due to their speculative nature and lack of intrinsic value, and these assets will drive out more stable and productive forms of investment. Allowing retirement funds to invest in crypto exposes workers to short-term speculative investments, undermining the whole purpose of retirement funds.
Neither the dollar nor crypto have any commodity value, so I’m not sure Gresham’s applies here. I’d tie this closer to fictitious capital and the scramble over the rate of profit declining.
I’d also hope that retirement funds were managed to chase consistent if low returns over aggressive growth assets with high volatility like crypto, but who knows what finance bros are smoking/snorting these days.