Ninjastic
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Board Bitcoin Discussion
Re: Economic foundation of Bitcoin from the perspective of Denationalization of Mone
by
RainbowKun
on 08/08/2021, 09:50:37 UTC
Quote from: lovemycar on August 07, 2021, 07:25:58 AM
Quote from: RainbowKun on August 02, 2021, 03:06:51 AM
Quote from: Tytanowy Janusz on July 31, 2021, 03:31:10 PM
Quote from: RainbowKun on July 30, 2021, 05:58:23 PM
We take it for granted that currency should be issued by the government not by any private institution.

abolish the central bank's monopoly on currency creation, private currency and free competition are permitted. In this competition process, the best currency will appear.

We did not take it for granted - we were forced to accept it, forced to use it. And lack of economic education (there is no economic education in school - guess why. Why we have religion, art in school and not economy? Why no one teach us how interest rates affect loan installment? Because it is easier to manipulate population that dont know how money works)

No one will abolish the central banks. No on will stop governments from issue and control the money of a nation:

Mayer Amschel Rothschild: "Permit me to issue and control the money of a nation, and I care not who makes its laws!"

Yes, this is our status quo, we are forced to accept it, and we are forced to use it. But when Bitcoin was born, Bitcoin gave us new choices. The government cannot control Bitcoin, nor can it eliminate it. When we choose Bitcoin, we not only get the freedom of wealth, we also get the freedom of thought.

I think that the author's denationalization means that Bitcoin replaces legal currency. The current state is that sovereign countries will not abolish banks. As individuals, Bitcoin is more like an investment behavior. I don’t think currency denationalization will play a key role in the development of Bitcoin. The three main factors that promote the development of Bitcoin are: developers, users, and mining pools. Although developers can determine the technical architecture of the Bitcoin network, it is difficult to influence Bitcoin price trends. The main promoters of the recent hot ICO are some veteran bitcoin users, but the rapid rebound of bitcoin prices shows that the key factor that really drives bitcoin's stock price is the major mining pools of bitcoin. All in all, Bitcoin is completely decentralized, not controlled by the government, let alone regulated by the existing banking system.

In my opinion, some of the logic in the book Denationalization of Money is the theoretical basis for Bitcoin to become currency now and Bitcoin to become world currency in the future. We are now used to currency issued by the government, but to some extent, currency can also be issued by non-governmental organizations. The issuance of Bitcoin does not rely on any centralized organization, it relies entirely on algorithms.