1.10 The Cantillon Effect in Detail

When central banks create new money, they don't distribute it equally. It flows first to financial institutions, large corporations, and asset holders — those who already own stocks, real estate, and bonds.

By the time new money reaches ordinary workers through wages, prices have already risen. The result: the rich get richer because their assets appreciate, while workers fall behind because their wages lag inflation.

This is not a conspiracy — it's a mathematical certainty of how money creation works. The system is designed to concentrate wealth at the top through the mechanism of inflation.

Bitcoin fixes this because no one can print more of it. There is no Cantillon Effect in Bitcoin — the issuance is predictable, transparent, and goes to miners who compete openly for it through proof of work.