5 ms·
it's not just knowledge and tech, a deflationary currency multiplies existing wealth at no risk while also multiplying the value of debts.
by nerfhammer 6y ago
it's not just knowledge and tech, a deflationary currency multiplies existing wealth at no risk while also multiplying the value of debts.
- panarky 6y agoVaroufakis only examines two scenarios: (1) Economy remains capitalist and Bitcoin replaces national currencies, or (2) capitalism is replaced with socialism. Each scenario has such a vanishingly small likelihood that it seems pedantic to debate them. A more likely scenario is that we retain market economies and national currencies, with more or less corruption, more or less rule of law and more or less authoritarianism. Bitcoin would still exist but it wouldn't replace national currencies. It seems that during periods of more corruption, less rule of law and more authoritarianism, we'll see more use of state power to debase national currencies for the benefit of the clique currently in power, with financial repression and confiscation for political adversaries and those not in the clique. During times like this, an asset that is independent of the clique, digital, borderless, and difficult to detect, debase or confiscate might be a more secure way to protect the savings of the little guy and the big guy alike.