Unit 3 Lecture

This lecture discusses the Austrian Business Cycle theory and proposes how it might apply to financial crises. It presents the Austrian school's perspective on economic cycles, theories about central banking's effects on capital markets, concepts of savings and loanable funds, and ideas about resource allocation in production stages. The lecture also covers Exter's Pyramid and theories about asset behavior during economic downturns. It examines hypotheses regarding Bitcoin's role in financial crises. It presents perspectives on how market behaviors might change during economic crises, discussing theories about risk aversion and asset preferences. It concludes by discussing various scenarios that might influence Bitcoin's potential role during financial instability. Think of how individual choices in the market change during a crisis. People would become more risk averse and they would intentionally choose the asset that loses the least value when sold to the market. Unit 3 provides an in-depth exploration of Bitcoin monetization, particularly focusing on the consequences of financial crises.