Post
Topic
Board Economics
Re: Bitcoin can never become a currency. Part 2: reward distribution.
by
Petryakov
on 28/06/2020, 23:23:27 UTC
As a battering ram dominance of fiat money with all the damage. Crypto practitioners should learn that the main function of cryptocurrency should only be greasing the transaction. Cryptocurrency must be able to improve the weaknesses of fiat that are made into commodities. In a capitalist economic system, money is also seen as a commodity. Therefore, according to the capitalist economic system, money can be traded with excess both on the spot and on hold. From the perspective of the capitalist economic system, money can also be leased.

Money should not provide direct use, which means that if money is used to buy goods, then goods that will provide benefits are not money. So money must become public goods. Stockpiling of money causes money not to circulate, causing economic congestion and money becomes unproductive. Hoarding of money mentally will give birth to the miser, arrogant, greedy, and lazy. Monopoly & hoarding of money means withdrawing money while from circulation means slowing the circulation of money. This means minimizing the occurrence of transactions, so the economy becomes sluggish.
If I got it right, you are talking about the speculative motive for the demand for money, which is a notion of Keynesian liquidity preference theory. The scarce supply of Bitcoin stimulate people to hoard BTC and speculate on the price fluctuations, which I addressed in Part 1. We can improve on that. What we cannot do is to get rid of operations with money derivatives, as they are a product of an off-chain legal framework. So, if someone takes our coin and packs it into some derivatives, which then are traded on the free market, this is just out of our reach.