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Let’s talk larger game - assume the btc-denominated economic zone becomes non-negligible in size. The best defense for neighboring economic zones is good fiscal
by MrMan 6y ago
Let’s talk larger game - assume the btc-denominated economic zone becomes non-negligible in size. The best defense for neighboring economic zones is good fiscal governance. Because BTC land will be an anarchic mess. It will have multiple germanies and Greece’s and Nigeria’s within it, and Cartel controlled sub zones, etc. who will deal with rising levels of indebtedness in BTC instruments? Who will deal with fraud, cartels seizing companies and households’ reserves, or simply defaulting on debt in this “trust less” Dystopia?
Vastly different levels of productivity between regions of the same economic zones or between zones can result in crazy social friction without trade regulation and controls - how will BTC land manage this friction?
Additionally - the energy and security requirements of btc zone participants will become crushing. Why will market participants continue to labor in this spiraling High energy hell when they can retreat to the much lower energy state of a trustful, managed economic zone? It will be like a breath of fresh air.