What if governments stop recklessly printing #Fiat because of #Bitcoin?
Discussion
Not possible. Not in the short term at least.
The first thing they would need to do is balance their budgets to stop money supply going up due to increasing public debt. Impossibly hard without defaulting on unfunded liabilities. That means no more social security. Good luck getting people to vote for that.
Then they will need to raise interest rates, or money supply will increase through private debt. This puts more pressure on the existing balance sheet, as existing debt gets rolled over on higher rates.
If the FED buys the maturing debt, it would increase the money supply, but reduce pressure on the governments balance sheet, since essentially they would then be paying interest to themselves. (FED profits contribute to gov revenue).
Any misstep creates deflation. Systematic deflation is arguably worse than inflation. Inflation encourages people to produce and consume more, where as deflation encourages people to do nothing. Necessities won't be met. Google the Gilded Age.
👉 You are not meant to manipulate units of measurement.