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An economy grows by accumulating capital and then putting that capital towards productive uses. Merely holding bitcoin will not grow an economy, but by allowing

An economy grows by accumulating capital and then putting that capital towards productive uses. Merely holding bitcoin will not grow an economy, but by allowing people to accumulate capital more efficiently, without it being debased, people will have the ability to produce what they previously could not. Suggested reading: "How an economy grows (and why it doesn't)"[1] At present, due to rapid depreciation of the dollar and a growing demand in bitcoin, there are not many effective uses of the capital which would net the saver an increase in their purchasing power versus just holding onto bitcoin. This is likely to continue for some years to come, and bitcoin holders will be rewarded for their thrift. Eventually bitcoin holders must invest their capital or they will see their purchasing power stay the same or depreciate. In practice, bitcoiners will invest some of their capital into bitcoin-related projects, as this improves the likelihood of fast adoption of a more equitable form of money, and if this money does succeed in eclipsing fiat money, the companies developing these tools will be lucrative. Money is not merely a tool for transacting. It is a store of value, a means of exchange, and a unit of account. Bitcoin serves all 3 purposes well. Admittedly, there are some issues with scaling the means of exchange, but I'm very confident that these will be addressed by solutions which are in the works. (Disclaimer: I am a contributor to one such solution) Also disclaimer: I've been holding (and investing) bitcoin since 2011, before shitcoins were a thing, and for precisely the reason I've outlined here, because I immediately recognised it as a solution to the scam of fiat money, although I never actually expected it to take off at the time and it was more of a pipe-dream. What is surprising is how few of its proponents actually understand its reason for existing. Most are merely in it "for the gainz" and don't realize they're positively contributing towards replacing unethical fiat money with a superior tool. > Young people will soon learn the value of real work, not quick and easy money. The last three crises were mostly fueled by rich people selling lies: dotcom, mortgages, I hope crypto is not another one (but it fits the pattern). Incidentally, it was bitcoin that encouraged me to work harder, because the opportunity to acquire it NOW while it is cheap is too big to miss, since it will be more expensive later, I will acquire much less with the same amount of work. I work my ass off, am thrift and pile as much as I can into bitcoin. "crypto" is definitely a bubble. It is fueled by SV investors and scammers promising "the next bitcoin," but are all solutions in search of a problem. Bitcoin alone fixes the inflation problem. You can't fix inflation by creating more money, as is done by all "crypto." [1]:http://freedomschool.us/how-an-economy-grows.pdf http://freedomschool.us/how-an-economy-grows.pdf

mgh2 5y ago
You can fix inflation by actually putting the money to work, so that production equals money supply, not sitting idle by borrowing with nearly zero interest rate to buy bitcoin (ex: microstrategy's balance sheet) Thanks for the resource, I checked the author (as I do with any source). https://en.wikipedia.org/wiki/Irwin_Schiff https://en.wikipedia.org/wiki/Irwin_Schiff Is bitcoin biased by a libertarian viewpoint? Schiff does not believe in paying taxes. It might not look apparent in the US, but countries where politicians are actually corrupt and devalue their currency without backing it with any production, tax evasion is a major contributor in furthering a country's GDP decline. https://www.investopedia.com/articles/investing/070115/understanding-downfall-greeces-economy.asp#:~:text=Greece%20defaulted%20in%20the%20amount,due%20to%20systematic%20tax%20evasion https://www.investopedia.com/articles/investing/070115/under....
- sparkie 5y ago
  Please read the comic even if you have differing views to the author. You might be surprised by what's in it, and he has a good sense of humor. I would also recommend Schiff's "The Kingdom of Moltz"[1] Bitcoin is absolutely biased towards a libertarian/individualist/voluntaryist viewpoint. If we consider that inflation is effectively a hidden tax that you have no ability to vote on, then it is an immoral tax to which you should not be subjected. Not all bitcoiners are anti-tax, and there are many classic liberals among us who share the belief of no taxation without representation. Some of us are less favourable to governments, having understood lessons from history, and would prefer to keep the government at a bare minimum or not even have it at all. To people who would rather decide how their own money is spent, bitcoin is an invaluable tool. It can be held in ways which are unconfiscatable, untaxable, uncensorable and plausibly deniable. People have greater ability to choose where there money is spent, rather than having a gang of armed thugs demand you pay up and then they decide how the money is spent. Irwin Schiff was a victim of such violence - right up to his death in a prison hospital. We don't need to look back in history to understand where excess governmental power can lead us though, as we only need to look at China. In China, the majority of the population use WePay for commerce, and every single transaction goes through a central point of failure (the government). The financial activity of citizens is traced and linked to their social credit scores, along with other things like obedience towards the state. Disobedience can leave you with a credit score too low to allow you to board a train out of your region, or leave the country at all. Complete robbing of individual liberties in the name of the "collective good," but none of it is about being good towards your fellow neighbour, it is about being obedient to the State. If unchecked, this social credit score system will almost certainly be coming to the US. We are already dangerously close with vaccine passports. Those in power would absolutely love for a Central Bank Digital Currency to be rolled out where they can know everything about everyone and prevent undesirables from transacting. Bitcoin is currently the thorn in their side - the only viable alternative to despots controlling every aspect of your life. [1]:https://freedom-school.com/tax-matters/moltz.pdf https://freedom-school.com/tax-matters/moltz.pdf

mgh2 5y ago

You can fix inflation by actually putting the money to work, so that production equals money supply, not sitting idle by borrowing with nearly zero interest rate to buy bitcoin (ex: microstrategy's balance sheet) Thanks for the resource, I checked the author (as I do with any source). https://en.wikipedia.org/wiki/Irwin_Schiff https://en.wikipedia.org/wiki/Irwin_Schiff Is bitcoin biased by a libertarian viewpoint? Schiff does not believe in paying taxes. It might not look apparent in the US, but countries where politicians are actually corrupt and devalue their currency without backing it with any production, tax evasion is a major contributor in furthering a country's GDP decline. https://www.investopedia.com/articles/investing/070115/understanding-downfall-greeces-economy.asp#:~:text=Greece%20defaulted%20in%20the%20amount,due%20to%20systematic%20tax%20evasion https://www.investopedia.com/articles/investing/070115/under....

sparkie 5y ago
Please read the comic even if you have differing views to the author. You might be surprised by what's in it, and he has a good sense of humor. I would also recommend Schiff's "The Kingdom of Moltz"[1] Bitcoin is absolutely biased towards a libertarian/individualist/voluntaryist viewpoint. If we consider that inflation is effectively a hidden tax that you have no ability to vote on, then it is an immoral tax to which you should not be subjected. Not all bitcoiners are anti-tax, and there are many classic liberals among us who share the belief of no taxation without representation. Some of us are less favourable to governments, having understood lessons from history, and would prefer to keep the government at a bare minimum or not even have it at all. To people who would rather decide how their own money is spent, bitcoin is an invaluable tool. It can be held in ways which are unconfiscatable, untaxable, uncensorable and plausibly deniable. People have greater ability to choose where there money is spent, rather than having a gang of armed thugs demand you pay up and then they decide how the money is spent. Irwin Schiff was a victim of such violence - right up to his death in a prison hospital. We don't need to look back in history to understand where excess governmental power can lead us though, as we only need to look at China. In China, the majority of the population use WePay for commerce, and every single transaction goes through a central point of failure (the government). The financial activity of citizens is traced and linked to their social credit scores, along with other things like obedience towards the state. Disobedience can leave you with a credit score too low to allow you to board a train out of your region, or leave the country at all. Complete robbing of individual liberties in the name of the "collective good," but none of it is about being good towards your fellow neighbour, it is about being obedient to the State. If unchecked, this social credit score system will almost certainly be coming to the US. We are already dangerously close with vaccine passports. Those in power would absolutely love for a Central Bank Digital Currency to be rolled out where they can know everything about everyone and prevent undesirables from transacting. Bitcoin is currently the thorn in their side - the only viable alternative to despots controlling every aspect of your life. [1]:https://freedom-school.com/tax-matters/moltz.pdf https://freedom-school.com/tax-matters/moltz.pdf