Have you heard people make the claim that Bitcoin is free market? Do you believe this to be true?
In this video I discuss how this is a complete myth. We will see the fact that Bitcoin does not incorporate the free market principle of supply and demand. Here is where the Bitcoin taking over falls down instantly.
▶️ 3Speak
Although I agree with the point that Bitcoin is not really a currency, it's more so like a digital gold and anyone that pushes the currency narrative is ignorant or delusional, Bitcoin is based on something called bit gol, Bitcoin as a currency is nothing but a pipe dream at best but it is as free of a market as it gets the price is determined by supply and demand, your argument don't hold water as Bitcoin will never be used as currency. And it's funny you mention most people don't have the capacity to understand inflation and deflation but you might be falling into that category as well, inflation and deflation has almost no effect on inequality the rich and powerful shape monetary policy they continue to become more rich and powerful regardless.
We don't live in an unlimited world so having unlimited money is not actually ideal at all, the unlimited nature of money and the need for constant growth puts a strain on the finite resources of our planet.
I agree with you that Bitcoin will not be used as currency and believe it a pipe dream. That is one area I disagree with most who state that. However, even it if was the case, the idea that it is free market doesnt hold simply from the money equilibrium standpoint.
I am not sure where I ever tied inflation or deflation to the ability to become rich or powerful. Not sure how you made that coupling.
This is not true. We do now have limitness, or near that, with the introduction of the digital world. Even in the physical world, resources go further as technology improves. Hence we do need an expanding money supply to keep funding newer innovations. To believe we are stuck in limit is passe.
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Mining Bitcoin is not free and could cost much than expected. Then, why it would be a free market.
You've said it right, average people simply cannot take a bite out of the Bitcoin pie with so many investors holding up and the price being tight up. Thus there are better alternatives to a free market and maybe Hive can be one of them.
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It isnt really the cost as much as availability. If Bitcoin were the only form of money, there would be a cap on it. 21 million is all there is. Who has their hands on it? We would know the answer to that.
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There are many ways of looking at things, and more so in a free market, Bitcoin may have both, but it is difficult to know 100% and affirm it.
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Nothing is really a free market anymore. The big corporations can eat the losses to build more market share similar to how you discussed the whales pumping and dumping prices. Even if the HODLers decide to be diamond paws, the price will just drop due to the existing liquidity.
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The digital economy will continue to transform the lives of billions of people before we even consider the profound implications of bitcoin and the further breathtaking developments of decentralized finance (DeFi), the digital economy being created in the Web3 metaverse.
The time has come for policymakers to fully grasp and engage in the digital space race. The role that blockchain and digital technologies can play in enabling society in creating greater and more open and free markets and a prosperous economy for all citizens has arrived letting the power of the crowd and the free economy prevail.
Bitcoin is a decentralized free market that pulls society back from the abyss of failure of geopolitical dystopia, by separating money from the state, diluting the economic influence of state power.
The fluctuation is synonymous of free market, 1 BTC = 1 BTC, 1 SAT = 1 SAT. Lightning network, segwit, taproot are solving scalability issues.
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Summary:
In this video, Task delves into a critical analysis of Bitcoin from the perspective of free market principles. He argues that Bitcoin, despite being touted as a free-market currency, actually fails to operate according to free market principles because of its fixed supply of 21 million coins. Task explains that this limitation constrains economic growth as demand for Bitcoin exceeds its supply, hindering the ability to invest in new projects and research. Task emphasizes the importance of understanding monetary systems, inflation, and money creation, asserting that the fixed nature of Bitcoin leads to economic stagnation and ultimately benefits the wealthy at the expense of the general population.
Detailed Article:
Task's discussion revolves around the notion that Bitcoin does not truly adhere to free market principles due to its fixed supply of 21 million coins. He challenges the common belief that Bitcoin operates in a free market since it lacks the flexibility necessary for true market equilibrium to be achieved based on supply and demand dynamics. Task argues that the fixed supply of Bitcoin inherently limits economic expansion and innovation. He points out that if demand for Bitcoin were to surpass the fixed limit of 21 million coins, there would be scarcities of funds for projects like Mars colonization or cancer research, highlighting the detrimental effects of such a capped system.
Furthermore, Task raises concerns about the concentration of Bitcoin among a few major holders like Michael Saylor and Elon Musk, suggesting that as larger entities accumulate more Bitcoin, there will be less available for the average person. This scenario could potentially lead to the entrenchment of economic power in the hands of a select few, creating a system that favors wealthier individuals while disenfranchising the majority. Task predicts that such a scenario would result in economic contraction, as the lack of available funds for investment and growth would hinder overall economic progress.
Additionally, Task challenges the narrative that Bitcoin's fixed supply is beneficial for a monetary system. He argues that a capped economy will ultimately lead to disparities in wealth distribution, where those who already have financial resources will continue to prosper, while those without significant capital will face economic hardships. Task stresses the importance of understanding monetary history, money supply mechanisms, and the creation of currency to grasp the limitations and implications of a fixed supply of Bitcoin.
In conclusion, Task's analysis offers a critical perspective on Bitcoin, highlighting how its fixed supply could inhibit economic growth and perpetuate wealth inequality. He emphasizes the need to question the concept of a capped economy and its implications for societal well-being, challenging the prevailing narrative that Bitcoin operates as a truly free-market currency.