RE: The Boom, Bust and Replacement of the global economy
Nice post.
While I agree that digital and decentralized economies will help to smooth the boom/bust cycles, boom/bust is never gonna go away.
Why?
Human Nature.
Yes, emotions are irrational, but the reason there is a boom/bust economy is that people use there emotions to make decisions about value and take action based on those irrational emotions. Short of a centrally controlled economy, I don't see how this can be totally eliminated.
Don't get me wrong. I agree that decentralized/digital economies will help smooth out the boom/bust effects, but they're still gonna be there.
To me, that is actually a good thing, as anything that takes away our ability to value freely takes away our humanity.
I think boom/bust is normal. I don't think that the current magnitude of it is though. I think it's magnitude will indeed smooth with decentralized economies.
They will be there but spread more widely I think so that one fail doesn't decimate all others.
When it comes to the mechanisms of failure, the bank created debt and inflation can be better managed.
Yeah. I realize now that my comment might have come off as supporting centralization or being sympathetic to it :-0 That is not the case at all.
Take away the centralized control of the markets and people will become much more interested in controlling their own fate and probably do a better job.