Sounds like folks just buying stuff in bitcoin over nostr to me....
In circular economies, the $1 i used and wrote on (incribed sats in this case) would eventually make its way back to me...
One day it'll be this way for bitcoin, but we won't be alive for it.
A circular economy is just the ability that you CAN pay eachother p2p like this..
It's a concept that exists on a higher level (macro, meso level)... not individual level
That's not how a circular economy means you are getting the definition of a circular economy wrong..
handy
"others worldwide are already using it as a payment method and settling transactions in their local area."
(Local area being nostr in this case)
"These areas are often referred to as a “Bitcoin circular economy”, or BCE, that runs on principle using bitcoin as their form of payment and unit of account."
(So just because it's bitcoin, it's a circular economy? )
"“Circular” refers to how the bitcoin is recycled inside the ecosystem paying for goods and services instead of being traded for a fiat currency to finalise a purchase."
(Yeah, so...not everyone here on nostr is bitcoin only)
🙄
Make this make sense.....
In general terms, Circular Economy is considered as alternative economic paradigm aiming towards sustainable growth without using up finite raw materials. It advocates that instead of the current Linear Production Economy model, manufacturers need to move toward a system designed to reintegrate all components into continuous processes while maintain product functionality and adding value at every stage of the cycle; therefore reducing both the impact on the environment, and cost associated with wasted resources (both biological and technical). In simpler words: Produce less stuff but produce it better and longer.
A circular economy can exist in the presence of both inflating and deflating money, provided that it operates under certain conditions.
To explain how this would work, let's start by looking at Bitcoin, which is known for its properties of deflation, hard cap, reduced malinvestments, and resistance to debasement and market manipulation.
Unlike traditional fiat currencies, whose values are controlled centrally by governments and can experience significant volatility, Bitcoin uses a cryptographic algorithm called proof-of-work to ensure a predictable rate of coin generation.
Since the total number of coins minted is finite, this effectively ensures that demand always remains above supply.
As the fiat price for the coin goes up with time, this creates a positive feedback loop that incentivizes the circulation of bitcoin within the economy and promotes greater participation in the ecosystem.
Moreover, since Bitcoin's architecture is distributed and permissionless, it eliminates the need for intermediaries like banks or exchanges, which can often manipulate prices through policies such as fractional reserve lending or restrictive regulations on transactions.
Now imagine if we could replicate this kind of self-regulating behavior in a circular economy, we might find ways to avoid many of the pitfalls associated with fiat currencies and conventional markets. Instead of constantly trying to maximize short-term profits, businesses could focus on creating value in the form of recyclable goods and services.
Similarly, households and individuals could participate directly in circular production cycles, perhaps even generating some of their own electricity through solar panels and selling it
good stuff man
1) I didn’t invent the term, nor am i asserting that it is the appropriate term to define Nostr, nor am I claiming a BCE is necessarily even desirable.
2) The thread was kicked off on your claim that Nostr was not a “circular economy” supported by your evidence that you hadn’t received as much BTC as you had sent. However,
3) A Bitcoin circular economy does not depend on every member of the BCE receiving back an equal amount of BCE as they sent. In any economy, individuals will have trade imbalances between each other. This isn’t a problem. You have a trade imbalance with every store you use in any currency. Your employer has a trade imbalance with you. Presumably your purchases and sales are done voluntarily. So you presumably are getting something of equal or more value in your btc transaction, otherwise why would you zap what you are zapping, especially in light of the fact that 99% of the things you can zap in Nostr are “pay whatever you want / tips”. So tracking where the BTC went, is not tracking where the “value” went. So it’s actually a pointless metric. The person selling seeds over Nostr values the btc more than the seeds they are selling. The person buying seeds on Nostr values the seeds more than btc they are trading. Tracking only where the BTC goes misses the other half of the transaction.
4) A BCE does not promise equal income distribution or anything else. The relevant meaning of “circular” in the BCE context is if people use BTC as their form of currency for goods and services within a community, then the BTC received “must” be spent back in the community because there isn’t anywhere else to spend the BTC.
So is Nostr a “circular economy” my hunch would be no, not yet, but not because of the reasons you sight, but because people are not doing enough services through it for anyone to be able to spend their sats on things exclusively on Nostr to trade back the trade imbalances.
