The Intergalactic Case for BTC...
Posted by CaptainKirk 3 weeks ago to Economics
Again, I know that most of the Gulch don't believe in BTC as a form of Money.
And, personally, the fees are too high to use it as Currency (daily, and small transactions).
But, let's imagine we are invited into an intergalactic environment, with many different planets involved.
Also assume that Gold is super common on many of these planets, as are diamonds, but on some others there is none.
Since they are more advanced... They handled this by creating a form of Money on the BlockChain.
With something they call "Credits". And it turns out, you basically find an on-ramp by selling some of your "assets"
for some of these "Credits". And they are digitally held, just like BTC. But there is a KNOWN Limited supply, so
there is no counterfeiting. Used for a Century in these advanced cultures.
Everyone generally accepts Credits, and Everyone is also willing to barter.
The point is that BTC is the closest thing to a FAIR form of Money that could span a galaxy.
In fact, because of the differences in resources among Planets... It MIGHT start to make more sense.
Everyone thinks Gold, Silver. We know FIAT CASH is trash. The government counterfeits it, and calls it inflation.
It will have ZERO value in the future.
While Gold and Silver will always have some value. Imagine the nightmare of operating with a Species where Gold is as prevalent as LEAD for us. Gold would lose its lustre.
But you will NEVER run into a Species that basically "Prints Credits" for free (like our Federal Reserve does, and those
Magic Computers in the government have been doing).
JUST a thought exercise. Again, BTC is, to me, a very fair way to transaction.
Especially because it cannot be controlled.
And while it requires Electricity and the Internet... Any dealing with space aliens that does not involve electricity is simply a take over move anyways...
Curious if this puts a different perspective on it for anyone.
The Video is 5m long, and it started my thought process...
And, personally, the fees are too high to use it as Currency (daily, and small transactions).
But, let's imagine we are invited into an intergalactic environment, with many different planets involved.
Also assume that Gold is super common on many of these planets, as are diamonds, but on some others there is none.
Since they are more advanced... They handled this by creating a form of Money on the BlockChain.
With something they call "Credits". And it turns out, you basically find an on-ramp by selling some of your "assets"
for some of these "Credits". And they are digitally held, just like BTC. But there is a KNOWN Limited supply, so
there is no counterfeiting. Used for a Century in these advanced cultures.
Everyone generally accepts Credits, and Everyone is also willing to barter.
The point is that BTC is the closest thing to a FAIR form of Money that could span a galaxy.
In fact, because of the differences in resources among Planets... It MIGHT start to make more sense.
Everyone thinks Gold, Silver. We know FIAT CASH is trash. The government counterfeits it, and calls it inflation.
It will have ZERO value in the future.
While Gold and Silver will always have some value. Imagine the nightmare of operating with a Species where Gold is as prevalent as LEAD for us. Gold would lose its lustre.
But you will NEVER run into a Species that basically "Prints Credits" for free (like our Federal Reserve does, and those
Magic Computers in the government have been doing).
JUST a thought exercise. Again, BTC is, to me, a very fair way to transaction.
Especially because it cannot be controlled.
And while it requires Electricity and the Internet... Any dealing with space aliens that does not involve electricity is simply a take over move anyways...
Curious if this puts a different perspective on it for anyone.
The Video is 5m long, and it started my thought process...
In case of Russia, they have been locked out of the western financial system, so, they released some of the limitations on BTC somewhat to circumvent West's restrictions. For now it suits them, but this will probably not last for too lond and they will ban it again like they did before.
It is risky to transact in something that can get you in trouble with the state. BTC adoption will not happen in those territories due to this.
So, the first order of business is to get rid of the state as a concept and educate all humans that statism is bad, kind of like Nazism.
We need to tie each BTC coin to the equivalent amount of value in the real world. We need to get rid of BTC miners being able to mint new coins and have new coins not be limited to some arbitrary number. New coins can be minted only when the same amount of value is created in the real world. If this real value is lost, the coin must be removed from circulation. This can be done by insurance companies that insure against loss of value. Each tie must be publically verifiable. Etc.
If I had my way, you could still have your BTC, it would just be radically different from what it is now.
Scarcity is not value. Utility+scarcity may be. But, that's not the only property that money needs to have. Store of value requires no-to-very-low-depreciation.
Gold doesn't rust (no depreciation). Gold is useful for many application (utility). Finally, gold is scarce.
Scarcity only helps with practicality. You can much more easily hold and transport the same amount of capital in gold than in silver, for example. So, gold is more useful for large transactions.
If someone invents a way to turn lead into gold for cheaper than mining it, then gold price will fall, however, it will still be useful as money. The price might fall to the price level of silver. You will need bigger facilities to house it. Still, people use silver as money, so, this will not stop gold being used as money too. The only problem would be that the existing holders of gold will lose a huge percentage of their capital, but I am sure they will manage. The important thing is not money but production.
Have a lot of people accept BTC as a form of payment is important, however, that doesn't make it 'sound'. That just makes it easier to transact in.
BTC being sold means there is a seller that is willing to sell x amount at some particular price. At any given time, there may be many sellers with various amounts of BTC they are selling at various price levels.
Same thing exists for buyers. There are many buyers willing to buy various amounts of BTC for various price levels.
Price level can be anything. Any of the fiat currencies or another cryptocurrency.
So, normally there are a lot of sellers and buyers in the market, but they just sit there waiting for their counterparty to appear and accept their terms (price level, amount). There are also market makers that sometimes buy and sell.
When a transaction happens, that generates a price tick, which sets the new exchange rate for the currency pair.
There are market orders that come through that accept whatever price the counterparties propose. So, let's say there are very small number of buyers that submit market orders but a lot of sellers waiting to sell at various prices. Some of them will get impatient and start bidding down the rate. As they do this, ticks mark lower and lower exchange rate. Some of these sellers get nervous as the rate keeps going down, so they become more eager to get rid of their holdings and continue to bid down the rate. Some of this price action may trigger margin calls of holders that were not interested in selling but have to because they are trading on margin, etc. So, the price 'crashes'.
So, the price level will stay the same only when there is the same amount of people willing to buy/sell at that price level / exchange rate with their market orders. If there is a disbalance the price will creep up/down.
So, you are taxed on something that is not profit. It sucks but what are you going to do? Sue the people who are inflating the currency. Persuade the state to tax you on real profits, not fake ones. Disband the state and you no longer have to pay taxes.
Not really. I said it is partially a ponzi. You haven't said anything yet to convince me otherwise. I also said a lot of other things in the world are a ponzi, so, you can't use the argument like "but look, it works like that other thing", pointing to something also has a ponzi element.
How are you going to use BTC when it goes to near zero? There are no alternative uses. The only thing that would be holding BTC price up when that happens is non-hodler transactions (merchants, government control avoiders). If those disappear then BTC is toast.
You will have to clarify this for me:
"That makes it possible to sell it to everyone (but only by paying for it with the previous purchases into the system, which doesn't happen, because those are held by individuals)."
I don't understand what you are saying there.
Would you agree... you cannot sell something if there are no buyers?
So, explain how something STOPS being bought... WHILE being sold. I missed that part in my stock trading days. I was under the impression that sales only happen when prices match up.
What I've seen happen is GAPS Widen. The bid is 150K, and the ASK is now 200K
The reality is. There are bears and bulls (buyers and sellers) for various reasons at many prices.
A company value, in simple terms, is a multiple of its yearly profit. So, if I buy all the Amazon stock, how much profit would I be keeping? Answer: zero. A multiple of zero is zero.
BTC is sound money. Here's the problem. It has to have enough people in it to stabilize it.
We are still early.
Thanks for trying. And with that, you don't see the value of the network... Interesting.
Gold value is based on it's scarcity. It has a secondary use in jewelry and electronics.
But if someone shows up and can turn lead into gold. This value evaporates as they start dumping TONS of gold.
Explain what you would tie it to that MANY Cultures and Planets would think "Oh, that makes sense"...
And how does direct deposit work? You know for those foreigners who send money back home?
I did pitch my cryptocurrency ideas to a few people, but they were too busy participating in crypto pump and dumps and didn't have any money to invest into my clearly superior system. So, fuck you guys. You can lose all your money trying to scam each other.
If you guys change your mind, you know where to find me. We can get together and assemble a team to design and build a system based on sound money principles. We will also make it so there is no get rich quick component to it. It will be designed such that the value of its tokens would not change over time. It will be the most fair system in existence.
But YOU can just create a TOKEN, for intergalatic use? (Is this tied to the blockchain? LOL).
Can it be counterfeited? And who am I to give YOUR catalytic converter for his goo-gaw, and he presents the token to you.
But what token. That's the actual point of the argument. Thank you for getting here.
Russia learned this as well. Or they are learning it. But Russia is adopting CBDC which are evil.
The challenge is "after bailing out the banks", "attacking the people trying to provide alternatives" isn't a good look. If the govt tried confiscating my gold, unlike my ancestors, I would fight to the end. IT would be the single most expensive move they ever made.
I invest my money in various assets.
Either to hedge (against currencies, or inflation),
or to make gains, or to otherwise support things I think should be supported (a friend has a "real" charity that does good locally).
I invest in people by mentoring or educating them in areas I comprehend and feel qualified.
invest is an interesting word.
Because the BTC people have INVEST $$$ in trying to do this. It will eventually get there.
Load more comments...