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by bigbob2 1748 days ago
>What makes dollars unique is that if you inject more dollars into the free market for a good, then ceteris paribus, you will cause more of that good to be produced.

If the video card shortage has taught us anything, it's that this is not always true.
1 comments
gruez 1748 days ago
I think you need to factor in timeframes here. The demand shock for silicon started less than 2 years ago. The time it takes to bring a fab online is much longer than that. More of the goods will be produced eventually, but the market can't materialize it out of thin air.
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bigbob2 1748 days ago
I certainly hope that is the case, but I remember the Nvidia CEO (it has been a while so things may be different now) saying they would not increase production because they were worried the demand surge was temporary. So long as crypto is profitable I don't see where any amount of production increase is going to stabilize the price. Maybe Ethereum PoS will fix this? Or will another PoW cryptocurrency just take its place?
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