BTC005: Bitcoin & Michael Saylor — A Masterclass in Economic Calculation

CPI is a useless measure of inflation as it does not include many types of assets important to households.

Best way to think about inflation: increase in cost of good that you want to consume, of which there will be several classes:

• Deflationary goods (electronic in nature, zero marginal cost / zero variable cost and infinitely scalable, hence deflationary since they only need to cover fixed costs then scale infinitely).
• Neutral goods
• Low inflation goods
• High inflation goods

Growth in M2 money supply likely most useful measure of inflation as it is the closest measure of available money pursuing purchases. Was 24% in 2020 (!). 5-year forward estimate is c. 15% (!).