laszlo-kiss
Joined 8 years ago
Joined 8 years ago
Inflation is caused by the oversupply of money, it is because the government in charge of that currency is printing it w/o limits. It is a way to pay back loans with cheap money.
Indeed, governments can ban things, but if there is a market for the banned item then there is going to be a supply. Governments don't seem to have the means to block drugs entering prisons, how will they stop ordinary citizens that feel the need to protect themselves from doing what they need to do?
This of course applies to all countries, not just the US. The dollar as the world reserve currency enables the US to rob the recipients of the value of their holdings after the fact. I don't think any nation is happy about that. It would also reduce undue influence of a single nation across the world and therefore maybe reduce the attractiveness of terrorist organizations' railing against it.
A currency that can't be debased is a stabilizing factor in international affairs (my take). This also translates to each country's citizens, they can't be robbed by their government...
Financial (or economic) sanctions affect the target country's citizens. I would submit that after the sanctions on Russia, Putin has gained support from the Russian people. Iran has been sanctioned for how many years? Yet Iran's citizens don't find the means to depose of their leadership... Maybe they like the way things are... Sanctions and all.
In my opinion your statement "the world embracing crypto all at once would escalate the financing of combat to unconscionable heights" is unsupported. Bitcoin is available now (has been for a decade), so what keeps bad actors from using it to purchase arms now. The international monetary system is not a gate (to cash out Bitcoin purchases). The Mexican cartels apparently have no problem using the banking system to finance their operations...
I guess we are now arguing 'Austrian Economics' vs. 'Keynesian Economics'... This is a fair simplification. As long as you hold real assets to protect your wealth, the government's debasement of the currency (modest inflation) is of no concern.
Clearly, when a person lives from paycheck to paycheck the only concern is "Can I buy food next week?" and "Can I pay the rent on the 1st?". Wealth preservation and modest inflation is not on the radar. However, it is still hurting the man that earns $12/hr, no matter the modesty of the inflation.
Just look around right now. Is the current inflation rate modest? Did everyone get a raise to account for the CPI going up? Will everyone get an 8.5% raise next year?
In my opinion decoupling the currency from anyone's "control" is the key idea behind Bitcoin.
When a government is able to engage in financial retribution against its critics, its own citizenry, Bitcoin might be necessary.
I think these hardships are the exact indicators of a dynamic new frontier. Apply caution, yes, but ignoring it might not be a good strategy either.
I view Bitcoin as an agreement and an understanding of a unit of value that we can all rely on.
Unless Satoshi shows up tomorrow and cashes out his coin I think we are not in danger of diluting the value of Bitcoin - which would be like the 'old ruse' I think.
Is Bitcoin the ultimate answer? I can't say, but it is a good first step.
Unfortunately, scammers are everywhere. I think it is my responsibility to do the best I can to avoid falling for various schemes. I hold that Bitcoin is not the cause of the scams. I unfortunately missed the early days of Bitcoin because I was concerned about being robbed and secondarily I did not understand (or even known about) the intent Satoshi had when he invented the thing...
Thank you for your feedback!
Since there is no way on Earth that the financial elite will just give up and go away, demand for crypto transactions will be ever present. They can pass laws to make it illegal, but that means that servicing the demand is going to be even more profitable. Consider that the risk of owning an outlawed crypto currency is nowhere near to carrying around a kilo of white powder...
Every time a windbag (insider/rich guy/financial guru), like Taleb or Bill Gates, bad mouths crypto, it should be considered an endorsement of the concept.
Which crypto you choose to put your fiat into however, is your business.