In fact, no one in the economic circle believes that the restoration of the gold standard will bring economic benefits. The cause of the great depression in 1929 is "deflation", and the core reason is that the market takes "gold" as the principal.

For example, the economy of an economy grows by 10% in a certain year compared with the previous year, but the monetary growth rate is 0%, which means that the property price will fall by 10%, leading to deflation. Gold is a currency whose supply is difficult to increase in the short term. With the development of economy, the dollar, which is supported by the principal, is bound to deflation. Deflation punishes those who borrow money. Money is becoming more and more valuable, and no one is willing to borrow money.

With the emergence of the great depression, people are reluctant to consume because they believe that in the context of austerity, the later consumption, the more favorable prices they can enjoy, and the lack of consumption power in the market makes it difficult for the economy to recover. The disaster caused by the great depression is many times more serious than the subprime mortgage crisis in 2008. The subprime mortgage crisis only reduced GDP (2008-2009) by less than 1%, while GDP dropped by 15% after the great depression.

The practice of the United States at that time was to prohibit the hoarding of gold coins in the United States, because hoarding gold would curb economic growth and aggravate economic depression. And through the depreciation of the US dollar, resulting in a large amount of gold flowing into the United States, we can issue more US dollars to stimulate the economy.

The growth of bitcoin and gold is more strict. It is the gold standard that caused the great depression in 1929. It is the consensus of the economic circles that a large number of hoarding behaviors eventually led to deflation, which led to the great depression.

Economist Krugman believes that bitcoin is a new gold standard in the Internet age, which will eventually lead to "hoarding, deflation and the Great Depression". This is also an important reason why mainstream economists deny that bitcoin will become the world's reserve currency.

(2021-4-18)