I came across some videos talking about the Cantillion Effect recently and found it worthwhile to think a bit deeper about it, especially since our collective involvement with the crypto market can find some relation to it.
After viewing this video by The Billion Dollar Secret, which explains the Cantillion Effect very clearly, I got the gist of it.
Basically, when money gets printed by whoever is in power (central bank, banks, etc.), the ones closest to the 'printer' so to speak (government, banks, etc.), get hold of it first and spend it on things they want to first. This way they buy the stuffs at the 'old' price, which is usually lower in the grand scheme of things. By the time, this new money gets added and circulated to the economy, inflation will occur. Prices of goods will increase. The ones further away from the 'printer', e.g., you and me on the street, bear the brunt of buying goods at a higher price. This makes the existing money that we held for so long in our savings less valuable. A case of inflation eating away our purchasing power.
Another related video by Crypto Casey also explains that being proactive in earning multiple streams of income is the way to counteract the effects of the Cantillion Effect. For example, having side hustles in a crypto blockchain economy could be a way of increasing one's income.
Crypto musings
The Cantillion Effect does not seem to be going away so long as human lives in societies that involve central governments. Those high in the hierarchy are always going to print money at some stage, and they are going to use it first.
For so long, we have only relied on the banking system to transact value between people. The birth of blockchain technology changed that.
It is only a matter of time before more people who are cognizant of the devaluation of their savings due to money printing and the Cantillion Effect would wake up and seek to jump onto the blockchain value transfer alternative.
I say, give it 10 years, which means we are still early.
P/S: This is not financial advice, and please do your own due diligence before investing.
If you read this far... and if you are a like-minded Hiver who is on the path to learning more about Hive and crypto investing, and if you like to be tagged when I write such posts, I welcome you to leave a comment below and let me know. We can form an alliance to support each other's growth.
You might be interested in this post, 
