Good stuff.
I often think of capitalism in the terms of capital formation. Specifically in a micro economic, local sense. The indicators I look for are how much tangible capital is formed in local conditions. I have discontinued looking at capitalism in the macro sense.
Completely agree that what we have is not capitalism and agree that the critical point is when the currency became controlled by a social construct. In the case of the US it was 1913. Most socialist countries only last about 100 years after the currency, and much of the economy is captured by social constructs.
On that scale the US should have fallen in about the year 2013. There are two backstops that have prevented that from happening. The first is holdings as reserve currency by other nations. That section of the economy isn't in direct control of the originating social construct(the fed). The second is somewhat related to the first, in that if hyperinflation is to gain ground, what is needed is the ability to readily double the volume of fiat currency in short amounts of time (doubling every few months, instead of over several years).
Reading the responses to the recent topic titled, "I would sell all my bitcoins if…." has left me concerned.
The kinds of responses on that thread reveal a deep misunderstanding of bitcoin and the current monetary system in many of those who are speculating. Let's consider the scenario in which bitcoin reaches $1000 or let's say $10,000 per bitcoin. Many have said they will cash out if bitcoin reaches this point. Why??
If bitcoin reaches $10,000 it will have to be because the fiat currencies of the world are tumbling to worthlessness via a hyperinflation type scenario and bitcoin is the safe haven, which if you know anything about the current monetary systems of the world, you know this is inevitable. (there have been 3800 fiat currencies throughout history and EVERY SINGLE LAST ONE has crashed to worthlessness; a value of zero) Why would you then sell all of your sound money (Bitcoin) for a bunch of fiat money that is inevitably becoming worthless? I don't understand the logic in doing that.
If bitcoin ever reaches $10,000 per bitcoin, you will NEVER see me selling for fiat paper money. You may however see me having a shopping spree at Overstock.com or TigerDirect.com or NewEgg.com! I will be buying things I want with my bitcoin profits DIRECTLY WITH BITCOIN, not selling my bitcoin for paper fiat. Hopefully by then there will be many more options, perhaps even Amazon.com will be accepting bitcoin for goods and I can have my shopping spree there.
Point being, selling bitcoin for dollars seems counterproductive. Why convert your paper fiat currency into sound value storing superior bitcoin, only to sell all of your superior bitcoin back for worthless antiquated fiat currency again? Why not just spend the bitcoin itself to buy what you want instead of taking a loss by converting back into dollars which will inflate away eventually anyway?
I totally agree that fiat currencies are going to colapse. I made a post about that on steemit: https://goo.gl/nh5q76
It's really worrying though how little amount of people really know whats going on with our monetary policy and how much of a bubble it is. Basically no one took my post seriously.
I'm wondering. How did you react when Bitcoin reached $10,000? It sure didn't happen before the economic collapse. Did you go on that sweet shopping spree?
Good stuff.
I often think of capitalism in the terms of capital formation. Specifically in a micro economic, local sense. The indicators I look for are how much tangible capital is formed in local conditions. I have discontinued looking at capitalism in the macro sense.
Completely agree that what we have is not capitalism and agree that the critical point is when the currency became controlled by a social construct. In the case of the US it was 1913. Most socialist countries only last about 100 years after the currency, and much of the economy is captured by social constructs.
On that scale the US should have fallen in about the year 2013. There are two backstops that have prevented that from happening. The first is holdings as reserve currency by other nations. That section of the economy isn't in direct control of the originating social construct(the fed). The second is somewhat related to the first, in that if hyperinflation is to gain ground, what is needed is the ability to readily double the volume of fiat currency in short amounts of time (doubling every few months, instead of over several years).
Saw your post on bitcointalk.org from 2015
I totally agree that fiat currencies are going to colapse. I made a post about that on steemit: https://goo.gl/nh5q76
It's really worrying though how little amount of people really know whats going on with our monetary policy and how much of a bubble it is. Basically no one took my post seriously.
I'm wondering. How did you react when Bitcoin reached $10,000? It sure didn't happen before the economic collapse. Did you go on that sweet shopping spree?