Crypto: Vitalik Buterin accuses economists of distorting inflation

Vitalik Buterin, co-founder of Ethereum crypto, has never been afraid to challenge conventions. Recently, he targeted the traditional definition of inflation, asserting that the crypto community has the right to redefine the term according to its own criteria. For Buterin, inflation should no longer be limited to a simple price increase but should encompass the increase in the money supply. This bold statement highlights the tensions between traditional economic definitions and modern perceptions in the crypto universe.

The Response to Axios: A Bold Redefinition

Vitalik Buterin’s remarks are a direct response to a post published by Axios on X, which argued that the word “inflation” now meant high prices rather than an increase in the money supply. Buterin, never short of sharp retorts, claimed that the crypto community had already “claimed the right to massacre” the term inflation, thus redefining its meaning.

According to him, inflation should be understood as the increase in the total money supply. This perspective clashes with traditional definitions, where inflation is often seen as a general rise in prices of goods and services. For Buterin and a part of the crypto community, this new definition is crucial for understanding and mastering modern economic dynamics.

Buterin is not alone in this semantic crusade. Many users of Farcaster, including former Coinbase employees like Binji.eth, have supported his position. This solidarity shows that the redefinition of inflation is not just a personal whim of Buterin, but a broader movement within the crypto community.

The Repercussions on the Crypto Community

This bold redefinition of inflation by Vitalik Buterin has significant repercussions on the crypto community. By redefining inflation as an increase in the money supply, Buterin and his supporters aim to tackle misinformation and clarify fundamental economic concepts for new crypto investors.

Traditionally, inflation is perceived as a threat to purchasing power, reducing the value of money over time. However, in the world of cryptocurrencies, where supply and demand dynamics can be radically different, this new definition may offer a more accurate and relevant perspective.

Buterin’s critiques didn’t stop at Axios. He also emphasized the importance of financial education, urging media and influencers to better inform the public rather than perpetuate false ideas. This approach reflects Buterin’s belief that knowledge and understanding are essential to navigating the complex world of cryptocurrencies.

A Vision for the Future

Buterin’s vision is not limited to the redefinition of economic terms. He also advocates for greater transparency and better governance within the crypto community. Recently, he addressed Farcaster to propose solutions to recurring industry issues, such as miner extractable value (MEV) and challenges related to privacy preservation.

Buterin also stressed the importance of technological innovation, particularly concerning social media and zero-knowledge proof (ZK) technologies. For him, these advances are crucial to maintaining the integrity and security of decentralized networks.

However, not everything is rosy in the world of crypto. The decision by some researchers from the Ethereum Foundation to join EigenLayer in exchange for substantial compensation in EIGEN tokens has sparked a heated debate. While some community members have welcomed the transparency of the disclosures, others have criticized this decision, fearing that a “huge compensation” could inappropriately influence decision-making.