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RE: Why Bitcoin Might Be A Bad Economic Model Afterall

in #bitcoin6 years ago

I would politely disagree with this entire sentiment, as well as almost everything said here.

That doesn't fit into reality, and a tokenized future.
If as you say bitcoin becomes a world currency, its not something you trade on a forex in that manner. It would 100% be an ETF that would be traded on that level. While I understand your purpose for a growing pie, and a currency that does not have the ability to inflate would be tough to trade, so it would likely be held like a commodity, or if anything used in a fractional reserve system. Like Bitcoin is stored and a DollarBit is created with a 1:10 ratio of backing to be used, and the ability to inflate and recycle based on transactions(just throwing a random idea) or even a value Index that buys and prints when value goes up, and burns as it deflates to keep a relative value with the fund etc... ETF's will stabilize the market so that is not a terrible thing, and would be good for above concept.

It is very Keynesian to think that without inflation people just hoard. Because of inflation, and artificially suppressed interest rates, you saw exactly what happens in Greece when a government does not have sound money and spends what It can not afford.
Value of property and commodities and everything goes up, inflation stagnates the value of something and people can no longer afford to live.

We already live in a lifetime of the gig economy, a tokenized economy would be no different, other than younger generations participation and ability to accumulate wealth in a new manner.

While this may be hard for someone looking at bitcoin or crypto on a micro level, it is fairly plain to see for a macro player, and esp an MMORPG and those of crafting guilds, who run economies on multiple games.

It is a long hold for sure, but it will catch on, if you have ever purchased a mobile game currency, or an item for something with riot points on league of legends, having currencies for each individual thing makes sense. It allows for those to compete in a space that they enjoy, and allows companies to reward that in a new manner, and they can trade it for whatever they need on any other platform and in the future, the world.

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