Bitcoin Is Not The UBI We Wanted But The UBI We Needed

in HODL4 years ago

Hey JessInvestors

The world has been turned on its hard in 2020, while I didn't think that a so-called pandemic would bring the world's economy to its knees, I knew something would, something had to give, something was not right, the virus did nothing more than bring this same issue forward a few years.

As we talk about the coronavirus attacking only the weak with preexisting conditions, no one had more issues to deal with that the fiat and debt-based system that is the world economy.

It has effectively begun to collapse and sons something falls its always those on the bottom that get crushed first. The pyramid scheme that is the fiat-based system is now falling apart as those at the bottom don't even have a subsistence wage to live on and survive.

We see the middle class slip into the working class, the working class becoming poor, and the poor well, are starving and homeless in record numbers.

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UBI

Governments around the world have always had a type of UBI we call it social grants, dole, benefits or social security, whatever you want to call it, this is an allocated budget from the government to provide the poor with an income.

Now that more people are falling below poverty lines or crushed under debt, we see the call for universal basic income where governments would not only send the poor but everyone money they can use to spend on anything.

The theory is the more people spend, the bigger the economy grows, the more jobs, the more we lift people out of poverty, the more tax base we have to keep UBI running.

The maths is still out on that one, and I doubt it can pay for itself, it would require the majority of those receiving it to put it to productive use, which is not the case in the consumerist economy we find ourselves in today.

Universal basic inflation

UBI only means a tax on everyone for the future, the more cheques we send out, the more we need to tax those who earn their income to cover the free money we give out. Then if we can't cover the shortfall, we then need to deficit spend and create new inflation to continue to provide this level of support.

Additionally, when you give people money and don't generate productivity to make products cheaper and faster, it bids up the current supply increasing prices, and we see price inflation eating into UBI, which means bigger UBI, as you can see it becomes a slippery slope to hyperinflation.

UBI will fund Bitcoin

If we are to get UBI, you can imagine how many people will be willing to invest it into Bitcoin. They're getting free money to why not put some into Bitcoin. If someone gave me $1000 right now, that's exactly what I would do and buy 0.1 BTC.

Additionally, with that price floor coming at each month, prices will rise, and more people will begin to pile in making Bitcoin even more valuable in nominal fiat terms.

Those that save their UBI in BTC would essentially be able to preserve their wealth better, and it can be a UBI they can use later down the line to get more for their purchasing power.

If we do get some form of UBI, it will be temporary relief before the systematic breakdown, but it will surely be a massively bullish environment for Bitcoin.

We all love free stuff

The vast majority of the world is in love with the idea of free stuff; they can be bought over easily with the lie of free education, free health care, free money and free anything. Give us your votes, get stuff free.

It's the way politicians keep the system going, but now that we have something that benefits from free money it could be a way to tilt the tables or provide a balance to this crazy way we run the world.

Since no one has an incentive to take away the punch bowl, I don't see the "free" ride stopping so I'm getting off this rollercoaster and stacking my sats as much as I can.

The only threat to Bitcoin is good government policy, and that I don't see happening any time soon.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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UBI idea was to assist people to get on their own two feet, not support them indefinitely. Debt derived from cost of living expenses increasing continuously feeds into more being in debt. UBI will never be sustainable worldwide IMHO, people need to find ways to trade, build and grow. Government could assist with self build projects selling piece of land, assisting with building own homes paying small amounts to owners as the build progresses as one example. Only aged and disabled should be on permanent assisted payment structure.

Totally agree in placing confidence into new technology by investing slowly for the future.

I get that, but when we talk UBI we always talk about those who need it most, but we don't talk about what people are going to do with the capital they get that don't need it at all. If its UBI it drives up price inflation as it allows for frivolous spending by those who don't actually need things.

I get that we should have a safety net for people but the way its proposed I think it's a short term sugar rush before it becomes a race to the bottom. Glad I am not in charge of these things, but I want to be able to look after myself and rely on no one, but that's just my feelings on this.

Like if I was in a country that had it and you told me I can opt-out of UBI I would, but then I also want to be opted out for tax. So I can you know pay my own way in this world, but that's just me

Self-help projects financially assisted creates more pride, I am extremely skeptical with hand outs creating nanny based systems into society.

A place where you are self sustaining, not having to pay tax, is a dream many hold dear. Taxman never cuts you a break, paid throughout forty years working career, much like medical aid, now going into retirement they still knock on your door penalizing you in both.

Looking back always hindsight, it would be better to take your earnings into many short and long term derivatives. Short term for emergencies long term for growth, avoid using conventional methods where third parties continuously eat away at your capital in charges.

I agree with that, having programs that help people leave the project and do their own thing is what we should be aiming for not just keeping people floating along. The more people building self-reliance the stronger the economy and they can help the next person and we pass it on.

I can imagine yes, I'm still only coming to terms with it now and trying my best to reduce my tax burdens. I don't know if I'll succeed in being able to build wealth and self-reliance with all that's going on but I'll give it my best

I don't think Ubi is needed anymore

Posted Using LeoFinance

Why do you think so?

The only way UBI can work is if you tax the hell out of all the companies that automated jobs away. Corporations are already notoriously good at evading taxes legally via loopholes and lobbyists. Good luck with that govment!

Well it's a race to the bottom, most UBI would be deficit spending, it would make companies far more likely to want to avoid taxes than they do now and the UBI would have to get bigger every year to match the price inflation and eventually it implodes into hyperinflation or the punch bowl has to be taken away

One of the best ways to destroy a currency IMO