Bitcoin equalises this. USD is going to hyper-inflate to 0 relative to bitcoin, and bitcoin will ultimately be the world reserve asset.
I will never understand how people fault crypto for not somehow magically solving the world's financial ills, as if humanity has ever had another (successful) plan for wealth distribution. How's that communism working out?
Crypto is meant to solve the trustless distributed ledger problem, nothing more, nothing less. Expecting human nature to somehow change because of this technology is ridiculous.
I'm not a bitcoin proponent by the way, and am well aware that it has massive downsides like the proof of work energy usage (addressed by proof of stake but often ignored because of bitcoin always taking the spotlight). I'm just sick of people naysaying without understanding the fundamental problem it actually does solve, and pretending there's no value or potential in the technology at all.
History has proven time and time again that sound money requires equivalent work to create.
Except it's extremely unsuited for this purpose despite of what some delusional people might be thinking. No (at at least semi stable) country ever will use bitcoin as their primary reserve asset...
But no, not because I say so but because it's obvious if you have at least a cursory understanding of the international monetary system works.
> But no, not because I say so but because it's obvious
Okay, so not because you say so but because you think so :)
Well.. I mean it's a bit like the "climate change is fake" or "5G causes cancer" people. Getting into a serious argument with them only legitimizes their viewpoints and makes them seem just as valid for not good reason..
- 5G causes cancer
- bitcoin is a scam
Your substantive and well-reasoned argument fits right in with that list ;)
That what you said, please don't put words into my mouth. My only point is that bitcoin (or crypto in general) would make a horrible currency if widely adopted. And it has nothing to do with any technical limitations related to bitcoin, extremely deflationary tokens just make a horrible currency (unless no growth, deflation and a permanent economic depression).
> Your substantive and well-reasoned argument
It certainly wasn't intended to be perceived as such.
(trying to make well-reasoned arguments when arguing with quasi-religious fanatics is a waste of time.. ).
Bitcoin is extremely deflationary. Imagine (or read a history book) a society in which almost all wealth/income is derived from land (a "deflationary" asset the value of which only increases as population grows and 95%+ of it is inherited).
Bitcoin is that just much worse because unlike in the case of land you don't need labor and significant capital investment to make any money from it you can just hoard it get richer without doing anything, which means:
- no economic growth (why invest in anything economically productive but risky when you can just get richer by doing nothing)
- eventually 90%+ of all wealth will become inherited and people who were born poor/disadvantage will remember these times as a lost utopia.
> It’s a pretty bad deal for most people.
Yes and even if bitcoin is a "better deal" for you it will be a significantly worse deal long term for the people who follow you..
If you have a growing economy (of course not a concern it bitcoin would replace Fiat currencies) it's extremely deflationary. The supply of money has to grow at least at the same pace as the demand for it, otherwise bad things happen...
https://onlinelibrary.wiley.com/doi/abs/10.1002/j.2325-8012....