How Bitcoin Returns US Manufacturing. Bitcoin Tech Talk Issue #207

The Cantillon Effect, generally speaking is how the first spenders of newly printed money benefit more than the later spenders. The Cantillon Effect is an analysis of how inflation affects an economy. If you’re unfamiliar, here is an excellent primer on the Cantillon effect from back in April.

An underrated aspect of the Cantillon Effect is that there’s much less incentive to manufacture for those close to the money. To see why, let’s walk through the incentives. Under inflation, the early spenders have more purchasing power. Within a country, this is certainly true, but this is much more true internationally.