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If Bitcoin becomes global reserve currency, governments won't be able to conjure money out of thin air to finance wars of aggression. And — sans inflation — pri

If Bitcoin becomes global reserve currency, governments won't be able to conjure money out of thin air to finance wars of aggression. And — sans inflation — prices of all things will decrease over time in absolute (BTC) terms. This could put a major dent in consumerism, as owning BTC will be seen as preferable to owning any other asset, particularly depreciating assets e.g. consumer goods, housing and cars. The above dynamics could more than offset Bitcoin's carbon footprint. But even if it doesn't, humans are driven by self-interest and every single individual on this planet has the financial incentive not to be left behind. You basically just have no option but to invest in bitcoin. And the longer it takes you to figure this out, the more costly it will be for you.

tsimionescu 6y ago
That's really funny. Bitcoin - the ultimate in speculative assets, a money transfer system so good it couldn't even power a small country's day-to-day transactions, while wasting the energy of a medium country, industry and all - the solution to consumerism and world peace.
- atweiden 6y ago
  > the ultimate in speculative assets You could've earned +10% ROI in 2020 by holding AUD instead of USD. Every currency is backed by thin air, including Bitcoin. The average lifespan of govt-issued currency is ~100 years. > a money transfer system so good it couldn't even power a small country's day-to-day transactions You most likely utilize a credit card or bank card for your day-to-day transactions. Nothing would change about this with Bitcoin entering the picture. > the solution to consumerism and world peace I made no mention of "world peace". Just because governments couldn't conjure money out of thin air to finance war machines doesn't mean there will be peace on earth. But taking away the money tree from governments around the globe changes the game completely. It is also true that — sans inflation — absolute prices of goods and services decrease, which disincentivizes consumption.
  - xondono 6y ago
    >You could've earned +10% ROI in 2020 by holding AUD instead of USD. And that would put you under the SP500 and the NASDAQ. Bitcoin in the same span did +286%. > You most likely utilize a credit card or bank card for your day-to-day transactions. Nothing would change about this with Bitcoin entering the picture. What’s the point of Bitcoin then? Because at the level of transactions Bitcoin can handle, we would have a bunch of central bank-like entities trading Bitcoin between themselves and a shit ton of intermediaries. > Just because governments couldn't conjure money out of thin air to finance war machines doesn't mean there will be peace on earth. But taking away the money tree from governments around the globe changes the game completely. That is not in any way a given. With all this intermediaries it’s not that hard to create “money out of thin air” through various schemes and leverage. If you don’t interface with the network directly, your supposed guarantees go out the window, fast. And the global network today can’t possibly handle the daily interactions in any big city.
    - atweiden 6y ago
      > And that would put you under the SP500 and the NASDAQ. Bitcoin in the same span did +286%. My point was that government-issued currency fluctuates in value, sometimes quite significantly. This underscores the fact currency is a speculative asset. > What’s the point of Bitcoin then? Because at the level of transactions Bitcoin can handle, we would have a bunch of central bank-like entities trading Bitcoin between themselves and a shit ton of intermediaries. Central banks wouldn't be able to debase their bitcoin via inflation, and money printing for political ends would grind to a halt. Meanwhile, the currency unit BTC would work in every country. I'd say that's a win over the status quo. > That is not in any way a given. With all this intermediaries it’s not that hard to create “money out of thin air” through various schemes and leverage. If those schemes inflated the BTC supply in the slightest, they'd instantly fork off the network. If banks decide to issue cash backed by BTC, it would trade at a discount compared to BTC proper given the inherent lack of assurances. And it would be competing against myriad L2 blockchain protocols designed to enhance transactional capacity. > If you don’t interface with the network directly, your supposed guarantees go out the window, fast. And the global network today can’t possibly handle the daily interactions in any big city. I don't have an issue with major credit card companies giving out BTC-denominated credit lines. IMO BTC is bound to become global reserve currency in any future where government issued ecurrency comes into the foray, and the private banking sector is bound to issue cash and credit lines backed by BTC.

tsimionescu 6y ago

That's really funny. Bitcoin - the ultimate in speculative assets, a money transfer system so good it couldn't even power a small country's day-to-day transactions, while wasting the energy of a medium country, industry and all - the solution to consumerism and world peace.

atweiden 6y ago
> the ultimate in speculative assets You could've earned +10% ROI in 2020 by holding AUD instead of USD. Every currency is backed by thin air, including Bitcoin. The average lifespan of govt-issued currency is ~100 years. > a money transfer system so good it couldn't even power a small country's day-to-day transactions You most likely utilize a credit card or bank card for your day-to-day transactions. Nothing would change about this with Bitcoin entering the picture. > the solution to consumerism and world peace I made no mention of "world peace". Just because governments couldn't conjure money out of thin air to finance war machines doesn't mean there will be peace on earth. But taking away the money tree from governments around the globe changes the game completely. It is also true that — sans inflation — absolute prices of goods and services decrease, which disincentivizes consumption.
- xondono 6y ago
  >You could've earned +10% ROI in 2020 by holding AUD instead of USD. And that would put you under the SP500 and the NASDAQ. Bitcoin in the same span did +286%. > You most likely utilize a credit card or bank card for your day-to-day transactions. Nothing would change about this with Bitcoin entering the picture. What’s the point of Bitcoin then? Because at the level of transactions Bitcoin can handle, we would have a bunch of central bank-like entities trading Bitcoin between themselves and a shit ton of intermediaries. > Just because governments couldn't conjure money out of thin air to finance war machines doesn't mean there will be peace on earth. But taking away the money tree from governments around the globe changes the game completely. That is not in any way a given. With all this intermediaries it’s not that hard to create “money out of thin air” through various schemes and leverage. If you don’t interface with the network directly, your supposed guarantees go out the window, fast. And the global network today can’t possibly handle the daily interactions in any big city.
  - atweiden 6y ago
    > And that would put you under the SP500 and the NASDAQ. Bitcoin in the same span did +286%. My point was that government-issued currency fluctuates in value, sometimes quite significantly. This underscores the fact currency is a speculative asset. > What’s the point of Bitcoin then? Because at the level of transactions Bitcoin can handle, we would have a bunch of central bank-like entities trading Bitcoin between themselves and a shit ton of intermediaries. Central banks wouldn't be able to debase their bitcoin via inflation, and money printing for political ends would grind to a halt. Meanwhile, the currency unit BTC would work in every country. I'd say that's a win over the status quo. > That is not in any way a given. With all this intermediaries it’s not that hard to create “money out of thin air” through various schemes and leverage. If those schemes inflated the BTC supply in the slightest, they'd instantly fork off the network. If banks decide to issue cash backed by BTC, it would trade at a discount compared to BTC proper given the inherent lack of assurances. And it would be competing against myriad L2 blockchain protocols designed to enhance transactional capacity. > If you don’t interface with the network directly, your supposed guarantees go out the window, fast. And the global network today can’t possibly handle the daily interactions in any big city. I don't have an issue with major credit card companies giving out BTC-denominated credit lines. IMO BTC is bound to become global reserve currency in any future where government issued ecurrency comes into the foray, and the private banking sector is bound to issue cash and credit lines backed by BTC.