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I agree that Bitcoin will change the game but you never answered the question. After the banks inject capital into the system, how does the majority end up in the hands of a few? Use home loans and go from there.

Speedster 4mo ago 💬 1

I’ll use a personal example. Im a worker and live below my means. I realize i am being debased at ~7% by monetary inflation. Of the commonly available investment vehicles, stocks bonds gold real-estate, I choose real-estate. Because i can save 20% of the value of a home i take advantage of the government subsidized mortgage rates and go 5x levered long. I rent it out to earn 4 ways. 1. Rental income. 2. Equity via loan principal reduction. 3. Tax reduction. 4. Appreciation caused by me and all my friends monetizing real estate because we know the fiat currency is shit. Rinse repeat via refinancing.

The bigger my portfolio the more i can borrow.

That its pretty rational given the current circumstances. And some people should probably rent so landlords provide a valuable service to them. For example let’s say you take a temporary assignment for six months the costs of buying and subsequently selling makes no sense.

But if i have the option for bitcoin it makes sense to save in that. So i sell my houses which puts downward pressure on prices so folks that were priced out can now afford. Take away the lender of last resort and banks will reduce the risk they take writing loans so there will be less buyers. If a bank goes bankrupt another will buy its assets for favorable terms and save me the taxpayer from bailing them out. Without the government subsidizing interest rates people couldn’t afford such high prices so prices would fall.

The thrust of this is that the government interference and granting of monopoly/cartel protection to bankers distorts the housing market.

On a bitcoin standard there will still be people that need or want to rent, there will still be people that want to run a real estate business and thats fine. What we would probably have much less of is people owning real estate because they think it’s the best way to protect their purchasing power from monetary inflation because sooner or later they will realize bitcoin is better. Even if you don’t end the central bank life is still better for everyone with bitcoin around, even for those that don’t buy it.

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BlueDuckBTC 4mo ago 💬 1

I appreciate the time you took to write that and thank you for sharing. You still did not answer the question.

How does the money we both agree is created to buy houses, build factories, build infrastructure end up in just the top 1%? It is actually a very simple answer.

Speedster 4mo ago 💬 1

I feel like I’ve done the heavy lifting today just go ahead and enlighten me.

BlueDuckBTC 4mo ago 💬 1

Whoever controls the money that flows in, controls the money that flows out. If there is a massive increase in productivity and a massive widening in the wealth gap…it means those “owners” are stealing from the “producers”.

Speedster 4mo ago 💬 1

No argument that those closest to the money printer extract the most value. The money comes from the fed and commercial banks so get rid of the fed and allow banks to fail while adopting bitcoin is my solution. Whats yours?

BlueDuckBTC 4mo ago 💬 1

Respectfully, I don’t think you understand how money creation works. When a bank makes a loan for a house, that bank created money. That created money goes to the contractors to build the house. If those business owners don’t use “proof of work” for compensation, then more than likely the owners will exploit cheap labor to make themselves richer. This model scales up and down.

Yes, bitcoin will help change incentives, savings, and the monetary system. No, bitcoin cannot change ideology with just protocol alone.

You can understand this completely because you are indirectly defending a system that revolves around “proof of stake”. Respectfully.

Speedster 4mo ago 💬 1

How does a business owner use proof of work for compensation?

I haven’t defended the proof of stake fiat money system at all.

You still have not provided a solution and frankly your description of the root cause of the problem is incoherent. Despite several interaction i cant understand you.

BlueDuckBTC 4mo ago

I’ll use a real life example. I own a construction business, it is profit sharing and we compete within our local market. Everyone gets paid according to the job and the work they completed…including myself. I don’t sit in an office or truck all day collecting large sums of money. If I dont work, I don’t get paid.

Proof of stake does not apply to just money or fiat money. Proof of stake is having more authority/control by simply holding an asset.

I have provided a solution, one of which we agree on, fix the money. The second is, educate people on proof of work, break the current Stockholm syndrome most people have with capitalism.

I apologize you do not understand me. I am trying to be as clear and simple as possible.