Inflation leads to more centralization over time because it makes it harder to save money. People start buying assets to protect their wealth. The higher the inflation, the more assets they need. Over time, people buy more and more assets to secure their wealth. As inflation rises, assets become more expensive, and those who own many assets make even more money. At the same time, because more people are buying assets just to protect their money, fewer assets are being sold or traded. This reduces the supply of assets, and since demand stays high, prices keep rising. This cycle pushes wealth and resources into fewer hands, leading to centralization.

#inflation #assets #centralisation

Today’s monetary theory is like: “Buy something with it now, or we will slowly take it from you.”

The current system is inefficient because the value of the currency keeps changing due to inflation and fluctuations in the money supply. This means government spending, whether on healthcare, education, infrastructure, or social services, has to be recalculated and adjusted regularly. This constant adjustment creates a lot of bureaucratic effort, increases costs, and makes the system less efficient. Long-term budgets lose their value, and governments need to intervene more often to keep things running. A currency with a fixed supply, like Bitcoin, could be a solution, as it would provide long-term stability and make government systems more efficient.

#bitcoin #government

Lightning transactions don’t necessarily need to be profitable to be valuable. It’s not essential for every payment to offer a financial incentive for processing. Often, it’s sufficient for companies or organizations to gain access to the payment network by operating a node. The primary incentive for running a Lightning node is participation in the network, rather than direct profit. Even so, this approach remains significantly cheaper than traditional transaction fees. This is what makes the Lightning Network so powerful and appealing.

#lightning #payment #node

Technological progress makes products more efficient and cheaper, which has a deflationary effect. To keep the 2% inflation target, more and more money needs to be printed, increasing wealth inequality. The faster efficiency increases, the harder it becomes to artificially create inflation. With AI accelerating technological progress even further, the problem grows. This could lead to a deflationary problem—a risk to our system? Can this system work in the long term?

#AI #technology #inflation

If I create two SD cards as backups for the private key for the BitBox, is that secure enough in the long term? How many years does an SD card reliably function, and what risks are involved?

#bitcoin #bitbox #privatekey

Excited to connect with more of you on Nostr! 🚀 For the next week, I’ll zap 100 sats to everyone who follows and repost my account. Let’s grow together!

Sometimes, when I discover a new perspective on our monetary system, I find myself completely captivated by these thoughts. It excites me to imagine how much could change for the better in the future. The idea of being one of the first to understand this, and possibly becoming part of a movement that brings about positive change, is something I can’t let go of. This sense of euphoria is so overwhelming that I somtimes can’t even fall asleep. Are there people feeling the same? #hype #awake

Our assumptions about economics and money are based on a flawed understanding, because we use a monetary system whose value is constantly changing due to money printing and debt creation. As a result, faulty conclusions arise since the unit of measurement we rely on is not stable. Bitcoin is the very first alternative to this system, offering a constant unit across our world. It has the advantage that it cannot be expanded and cannot easily be altered, making it a fixed unit of measurement that enables a more objective evaluation of values and economic processes.

#bitcoin #economics #changeperspective

One of the biggest issues in today’s financial system is the role of asset managers and how they handle our funds. These institutions often act as central authorities that not only manage our financial resources but also wield significant influence over markets.

The core problem lies in the concentration of power and responsibility in the hands of a few major players. Asset managers like BlackRock, Vanguard, and Fidelity manage trillions of dollars on behalf of their clients. This centralization poses several risks: firstly, mismanagement or poor decisions by these institutions could have massive repercussions on the global financial system. Secondly, there is a potential dependency on a small group of decision-makers whose interests might not always align with those of their clients.

Another issue is that companies are obligated to follow the directives of their shareholders. Their primary duty is to represent shareholder interests and implement their votes. By entrusting funds to large asset managers like BlackRock, shareholders effectively transfer their voting rights to a handful of centralized actors. This can create conflicts of interest, as decisions made by these asset managers significantly influence corporate policies across various industries.

There is a risk that the same individuals control different industries. This could lead to intentional problem creation to sell profitable solutions later — for example, developing unhealthy foods that foster diseases, which are then treated with medications. Similarly, media campaigns could disproportionately highlight certain issues to promote profitable products like for example "environmental solutions."

In capitalism, the entities generating the highest profits grow the fastest. Capitalism dictates that those who do not exploit these mechanisms will ultimately lose to their competitors. Even if these problems are not yet fully apparent today, within this system, it is almost inevitable that they will arise in the future.

#pension #funds

I disagree. Bitcoin is not productive. its value rises simply because other currencies are devaluing.

If MicroStrategy’s Bitcoin holdings generate more profits than the world’s largest companies, it could lead to significant issues. If Bitcoin’s value rises to several million as we think and investors shift from productive assets to an “unproductive” MicroStrategy, what capital will remain for production? Will governments truly refrain from intervening? If trust in the USD collapses, wouldn’t governments seize Bitcoin from a company profiting solely from financial strategy?

I don’t know the answer but would approach this cautiously.

Simple: lost my keys

Why are large holders making decisions about a fork? Nodes and miners typically make these decisions together. For example, if a company holds 50% of all Bitcoin, but doesn’t transfer them on the mainchain. Miners would have no incentive to support that chain, or follow the company’s opinion/ideas. Miners follow the chain that offers the most fees, and the chain with the most individual users would likely generate the highest fees together. Or am I missing something?

What happens if the next CEO of MicroStrategy uses the Bitcoin holdings to enrich themselves?

can‘t say how long it takes, but in the end all with self custody will win

maybe it was a superpower nation, but now they have soaring costs and not enough power🔌

That’s me :)

waiting for strike in switzerland :)

America’s earlier success was closely tied to democracy and freedom, which created space for revolutionary ideas. However, this is no longer the case, largely because governments are creating massive amounts of new money and debt levels are rising everywhere. This constant money printing blurs real demand in the economy, making it difficult to identify where resources and labor are truly needed. The market no longer responds to natural supply and demand forces, as it once did, but is distorted by artificial financial interventions. This has undermined the ability of capitalism to function as efficiently as it used to.

In a system that suppresses divergent thinking, innovation cannot flourish. Capitalism, especially in the U.S., worked well in the past because it automatically revealed where there was demand. When there was a shortage in a particular sector, wages would rise, attracting people to fill those jobs. This flexibility is lacking in centrally controlled socialist systems, where decisions are made from the top, and resource distribution is inefficient because it doesn’t reflect real needs.

Socialism requires constant surveillance to ensure no one exploits the system. In contrast, capitalism self-regulates: if someone cheats or operates inefficiently, they can’t compete on price and will eventually fail. However, this only works if the currency is stable and not corrupt. Due to artificial money printing in the West, capitalism is no longer functioning as it should. Inflation and unequal distribution of newly printed money distort the market, benefiting sectors like finance while more essential areas are neglected. As a result, workers no longer seek the jobs that are truly needed, leading to dissatisfaction and inefficiency.

The longer this continues, the greater the distortion or manipulation of the economy becomes, and the bigger the problems will grow. This will cause Western economies to fall behind other systems more rapidly or become less functional altogether.

#democracy #system #moneyprintergoesbrrr