Bitcoin as base money?
https://ambcrypto.com/why-bitcoin-may-be-the-base-money-of-the-future/
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Bitcoin as base money?
https://ambcrypto.com/why-bitcoin-may-be-the-base-money-of-the-future/
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@taskmaster4450le it would be interesting to see that happen...
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This I agree is coming. It will at some point be the currency everything else is measured against. Why? Because it will be a value the entire world can agree on and every country will have access to. Countries will still be able to print their own currencies but not managing them well will devalue them against bitcoin. It's a lot to think about as far as how it will all fit together.
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That is presuming that things, in a couple decades are based upon countries.
Personally, I foresee the shift to network based economies.
Massive digitization reduces the importance of governments.
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Yes, wouldn't THAT be interesting. Build a "charity" crypto that would be able to instantaneously shift capital to where it's needed. You could also look at building a token community that siphons off a portion of inflation specifically for certain use cases. Feeding the homeless, providing the underprivileged healthcare, sheltering the homeless for that matter. It could literally be a defi platform. Take Cub, for instance. Just take a small number of the xfactor and put them in an account where the community could vote on what to do with them. It would lessen the yield to a small degree but if people are truly committed to bettering the world we live in, it would incentivize angel investors to participate thus truly bolstering the HODLers and also providing a tangible real world use case.
Hmmmm. Interesting. When you think about it, the possibilities really are endless. They could use that money to build one of those "vertical farms" in say, the south side of Chicago and provide fresh produce for food shelters and the poor.
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This is very true. We are only limited by our imagination and the processing power of the computation we have.
We can solve a lot of the worlds problems through out innovation and tokenization. If you read my latest post under my leo account, you will see that there is a lot of innovation in terms of job scalability.
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I haven't gotten to that one yet. It's hard to keep up with you. I have a little bit of a life outside this space... lol
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Yeah I dont have that. LOL
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I think his statements on M1, M2 and M3 are probably correct. You can't figure out everything from just reading how well the monetary policy is doing. But I don't think he addressed how BTC would be a base currency as it incentivizes people to save and not spend. This does not promote economic development and I don't see how people would want a volatile BTC as the cash they are accepting.
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I agree with you. I dont see people spending BTC...ever.
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Well, yes and no. I've said this before but I don't know if it will ever gain any traction. They need to eventually trade bitcoin in smaller denominations. Like maybe even all the way down to satoshis. I'm not sure what it would take (or if it's even possible) to add a couple more decimals. At $1 million/btc, one satoshi = $.01 US. One penny. If I was walking around with a half a bitcoin, for example, that would be 50,000,000 (50 million) sats. I think I would be much more inclined to spend a few of those if I could guage what I'm actually spending. Face it, when I have .00031313 bitcoin I really don't have a clue what that is. I can figure it out but it doesn't really register. If, on the other hand I had 31313 sats, it would be a lot easier to judge what I had and how much I'd be spending if I used some.
When you consider that the vast majority of people in this world already consider buying bitcoin pointless because they can barely buy anything that seems meaningful, it might go a long way towards getting people to actually use it.
Plus, it would take the total supply to 2,100,000,000,000,000 (2.1 quadrillion), probably a much better number to use when you consider it could potentially be representing the entire world's money supply.
The difficulty would be in trading it. You couldn't really trade in pennies. You'd need a larger denomination as well. Maybe halfway. A "Nakamoto" could be .001 bitcoin or something. (100,000 sats)
Anyway, just a thought that's rattled around in my brain for a while now...
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The problem is with just a few SATs, the fees will kill it. That makes it impractical for Bitcoin as transactions.
And Lightning is just like constructing another chain, it isnt even really tied to the original for the most part. So from that perspective, I dont see the security that BTC provides.
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Maybe it will be in the future, but we all know that it is not a stable currency, it is very volatile. I don't know if it would be a good idea to see BTC as the base currency.
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