I’m very pro bitcoin but here’s something strange I realised recently.
As bitcoiners we talk about bitcoin being anti-fragile as a decentralised protocol but we also want it to replace all fiat and become the global reserve currency thereby hugely centralising the whole financial system onto a single form of money. 🤔
#bitcoin
…single unit of account. Not because is a single form of money. People should be free to choose what form of exchange of their labor / time for goods or whatever they want and bitcoin is the only currency that you are able to choose (different from the state money that you are enforced since your birth). The current system forces a person with similar skills and performance to work more to have the same purchase power just because he born in a third world country and the corrupt government take over 50% of his income as taxes.
To give you an example: Check the prices of the cheapest car in any country versus the minimum wage.
Of course, there is a lot of factors involving the difference like profit margin, corruption, government interference, state inefficiency, etc. but the root of all these other factors is the form of money. So, bitcoin (as probably you already know) solve several problems just being a new world unit of account equalizing the fair value of our time wherever you live and a new form of money - if you choose so - separating your money from state.
Great answer but let me see if I’m getting this right. What u r saying is btc is a single unit of account. Ie fiat will continue to exist (no country is going to give up their ability to print money) but btc gives an escape for ppl to who want to step off the fiat standard. Most ppl aren’t going to take the risk but those who do r going to benefit from btc. Ya I can see that happening. But what happens when everyone want to convert to btc. Isn’t that going to cause the same risk of centralisation onto btc? But I think I get what you’re saying. Ie btc is going to be an escape mechanism and not everyone is going to take it.
Exactly. If everyone chooses BTC was because BTC succeeds as monetary solution and the centralization risk vanishes. A hypothetical example of this reality was given in the book Atlas Shrugged when they choose to only accept gold between them and fiat money became worthless in Atlantis. Everything was measured and priced in gold and the only way to earn some gold to transact with them was through labor. At some point, BTC will not be sold anymore and everyone will realize the real value of BTC: 1 BTC = 1 BTC.
You got right. The beautiful thing about BTC is that will not be possible to everyone convert their fiat into BTC. At some point, the only way to get some bitcoin will be through labor. A very good example of this scenario can be found in Atlas Shrugged, looking how the commerce in Atlantis works. Everything priced in gold and the only way to get some gold is through labor. Gold became the ultimate unit of account and therefore to valuable to anyone being interested to exchange by any amount of fiat. When BTC succeeds, will be the same case and everyone will realize the real value of bitcoin: 1 BTC = 1 BTC.
Different post, same thought. An issue with the internet made me think that the first was not sent.
Stops Fraud.
If the central settlement system was cryptographicly secured, fake bonds would be impossible, and the national bond yeild and currency trading we currently have would look very different.
That's how religion operates yeah
So you may think that one single law for gravity is a point of failure? It can’t get more centralized then that
