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Writer's pictureJonathon Jundt

Internet Induced Inflation

Inflation, by definition, is a decrease in the purchasing power of money, reflected in a general increase in the prices of goods and services in an economy. The internet has created a microeconomic problem through influencing the demand curve in the context of unknown supply. An information advantage, internet vendors routinely utilize psychology to coerce consumers through artificial scarcity. The metaverse is a complex, salient, and recent example of this process.


Non fungible tokens, semi fungible tokens, and blockchain currencies represent the essence of artificial value. As society has evolved to rely on technology for communication, transportation, and basic needs, trust in these systems has expanded into trust in value exchange.


For the past ten years if you used a standard internet browser, enabled your location services, and queried hotel room availability from an aggregating website, you might find that the price increased once the algorithm used your IP address to classify you as part of the demand curve. As interest or need is expressed, the code went to work increasing the price incrementally while simultaneously informing you just how many others were a)browsing for a hotel suite, b)had recently booked a hotel suite, or c) had left positive reviews about their experience.


The aforementioned paragraph might be applied to many other areas including airline tickets, any product sold on Amazon, ride sharing applications, event tickets, or vehicle rentals. It is decidedly an informational disadvantage for the consumer saturated with convenience resulting in microinflationary pressures on individuals. In this context, it is very easy to understand the ever increasing delta of wealth disparities.










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