GM #plevs #nostr
The Cantillon effect was a theory proposed by Richard Cantillon in the 18th century. Cantillon argued that those who received the newly created money first would benefit the most, while those who received it last would benefit the least.
In practice, the Cantillon effect means that the newly introduced money is not distributed equitably. Financial institutions get the new money before anyone else and benefit from greater purchasing power before prices adjust. This uneven cycle negatively affects retail users, whose purchasing power is reduced due to inflation.
#Bitcoin thanks to its fixed monetary issuance policy and its equitable and transparent distribution system, is positioned as a tool that helps minimize the negative effects of the phenomenon described by Cantillon.
