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Every aspect of life is related to population distribution graph which is doomed in Europe. Even if you save your retirement in a real estate, it's value is ti

by przeor 4y ago

Every aspect of life is related to population distribution graph which is doomed in Europe. Even if you save your retirement in a real estate, it's value is tightly correlated to amount of people in productive age when you try to sell it. The only thing that can save one, is to start saving money early and give it to componding effect. Albert Einstein once said “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn't, pays it”. Anything else wont work because demographic at least for europe is bad. The good information is that to make componding effect to work, crypto is much more compund effect friendly asset in the world. Of course, in the mean time you need to use your brain to not lose your priv key or being phished etc. Good luck

saltcured 4y ago
Under these population curve assumptions, doesn't crypto have the same inflationary risk, as a share of future economic value? It's not a technical characteristic of the financial instrument, but instead a basic imbalance between a net supplier and net consumer generation. A bunch of retirees holding crypto tokens is only rational if there is a reason to believe that a bunch of future kids would see value in those tokens. Just like dollars or euros or yuan. If the future population does not drive a large enough economy, there are dwindling products and resources available to swap for all existing financial instruments. These real resources are things like clean water, food, medicine, shelter, energy, technology, and services which cannot be stored over a person's lifetime and then consumed decades later. It seems to me that the instruments with meaningful value in this picture are those rooted in a right to capture future production. That is things like ownership shares in continuing business enterprises, industrial infrastructure, natural resources, buildings, and developed land for housing and commerce. Of course, infrastructure and buildings decay over time, but they do represent a kind of real stored value for a planned service lifetime. An actual plan to take care of a shrinking population would need to think about how automation can increase the efficiency of production such that a smaller future generation can generate sufficient output to satisfy the needs of the whole population including the elder non-workers. To avoid the Ponzi threat or more generally the "musical chairs" game mode, this plan needs to accomodate continous, incremental decline. The important technological and cultural skills to operate this system need to be passed down to ensure continued production for all who remain alive.

by przeor 4y ago

saltcured 4y ago

Under these population curve assumptions, doesn't crypto have the same inflationary risk, as a share of future economic value? It's not a technical characteristic of the financial instrument, but instead a basic imbalance between a net supplier and net consumer generation. A bunch of retirees holding crypto tokens is only rational if there is a reason to believe that a bunch of future kids would see value in those tokens. Just like dollars or euros or yuan. If the future population does not drive a large enough economy, there are dwindling products and resources available to swap for all existing financial instruments. These real resources are things like clean water, food, medicine, shelter, energy, technology, and services which cannot be stored over a person's lifetime and then consumed decades later. It seems to me that the instruments with meaningful value in this picture are those rooted in a right to capture future production. That is things like ownership shares in continuing business enterprises, industrial infrastructure, natural resources, buildings, and developed land for housing and commerce. Of course, infrastructure and buildings decay over time, but they do represent a kind of real stored value for a planned service lifetime. An actual plan to take care of a shrinking population would need to think about how automation can increase the efficiency of production such that a smaller future generation can generate sufficient output to satisfy the needs of the whole population including the elder non-workers. To avoid the Ponzi threat or more generally the "musical chairs" game mode, this plan needs to accomodate continous, incremental decline. The important technological and cultural skills to operate this system need to be passed down to ensure continued production for all who remain alive.