Definancialization / Hyperfinancialization
mylessnider.com
Definancialization / Hyperfinancialization
1–10 of 20 posts
Re: Definancialization / Hyperfinancialization
#2Two questions for the author,
You say bitcoin can’t be debased. How is that true? Aren’t there a few big holders of btc?
If they decide to exit all at once wouldn’t the value crash?
And in the last paragraph you mention “the core value proposition of bitcoin”
What do you believe that is?
Re: Definancialization / Hyperfinancialization
#3One of the claim made here is that we are wasting time putting our money to work.
I would argue the contrary. In a world where people are just putting their savings under their mattress, it's a shame.
Money is energy. Instead of let it aside "in case we need it later", it should help other people to grow, and give them an extra pair of hands.
If we don't want to waste time looking at where to invest it, then taxes to put dormant money into a sovereign fund, which in return will give out the interest in the form of social measures, is something that can be done as well.
Re: Definancialization / Hyperfinancialization
#4Two questions for the author, You say bitcoin can’t be debased. How is that true? Aren’t there a few big holders of btc? If they decide to exit all at once wouldn’t the value crash? And in the last paragraph you mention “the core value proposition of bitcoin” What do you believe that is?
Those "few big holders" havent created any of their own BTC, they just own a part of the 21 million BTC that can exist- if they sell, sure the price might fall, but its not debasement like with the USD where they just print more dollars, 'out of thin air'
Re: Definancialization / Hyperfinancialization
#5> People have been convinced that they need to “put their money to work,” “make their money grow,” “own productive assets,” and “earn yield.” Lewis argues that the reason for this is money printing. The government prints money, the money supply grows, prices increase, and the purchasing power of any money held as savings decreases. If you’re just holding money, you’re bleeding value.
Controlled inflation is what the author is describing. I think the importance is that it provides the slope that keeps the economy from stagnation.
Lest we forget, the US intentionally moved away from the pension system. Reduction of labor unions, changes in tax law in reference to 401k plans and creation of IRAs — these are the decisions that shaped the current economic system.
It is disturbing that this is being framed as a conspiracy, while not describing the reasons behind it. Stagnant “dark money” pools are a grim idea for future economics.
Re: Definancialization / Hyperfinancialization
#6I love how one of the most volatile assets on earth—- which could also be made illegal—-is a more viable alternative to real estate or equity for wealth preservation.
Re: Definancialization / Hyperfinancialization
#7[deleted]
Re: Definancialization / Hyperfinancialization
#8Two questions for the author, You say bitcoin can’t be debased. How is that true? Aren’t there a few big holders of btc? If they decide to exit all at once wouldn’t the value crash? And in the last paragraph you mention “the core value proposition of bitcoin” What do you believe that is?
Those "few big holders" havent created any of their own BTC, they just own a part of the 21 million BTC that can exist- if they sell, sure the price might fall, but its not debasement like with the USD where they just print more dollars, 'out of thin air'
Is there a practical difference?
“The price may fall” is a nice way to say “the value would be mostly erased”
Like with any store of value, the value of bitcoin is backed by the fact that people believe it holds value.
Unlike gold, however, bitcoin has no practical value in and of itself. (Gold, at least, looks pretty and doesn’t really decay. It’s a great conductor of electricity too)
Bitcoin also isn’t as eternal as gold. In a doomsday scenario where global internet access goes down, gold would still work, bitcoin would not.
You can’t debase gold either.
So what value does bitcoin have? It’s easier to transfer, maybe? (One must compete with gas prices IIRC)
Re: Definancialization / Hyperfinancialization
#9[deleted]
Re: Definancialization / Hyperfinancialization
#10This article is manifest nonsense. It's the usual "fiat" money is bad and bitcoin is good story, heavily salted with a series of non-sequiturs.
They can't even get the simplest of facts right. The government doesn't "print" money, it has no ability to do that. The Fed can create and destroy money and it does so for carefully considered reasons and with a well defined strategy.
Bitcoin adherents don't want to know that because they're in the business of starting with their conclusion, and desperately working backwards in any possible way they can.