What happens if inflation actually does go vertical?

Digital stays cheap, but physical becomes a premium product. Zoom > flights, Twitter > theaters.

Even more of life would crowd onto centralized tech platforms.

Crypto thus saves us in two ways: BTC and tech decentralization.

The financial crisis & COVID were both stimuli for the digital world.

Printed money & negative interest rates drove funds to higher risk tech stocks.

And the physical world became more expensive (or even inaccessible) thanks to the state.

Inflation will have a similar effect. https://twitter.com/balajis/status/1310308045155516417

The idea that inflation favors the digital world isn’t one I had fully put together till recently.

Basically, a rise in commodity prices is passed through to all physical products. If oil soars, flights are more expensive. But Zoom’s marginal costs don’t increase as much.

The other part: if we don’t speed up the decentralization of property rights off centralized platforms, even more of life will soon be spent under the tender mercies of random moderators.

Inflation makes offline less price-competitive, delivering more unto that faceless maw.