5 Reasons Bitcoin Is Great And One Reason Bitcoin Sucks
#2. A store of Value, the new digital gold of the future
One reason the US money printing machines have been purging dollars 24/7 from 1971 onwards, is because President Nixon smashed singlehandedly the umbilical cord that still connected money with mineral gold from its inception days. Foreign countries where not able anymore to dollar-flush and sapping US gold reserves in the process.
There are ‘good’ and ‘bad’ things to say about having a gold standard in relation to the job to manage an economy.
Libertarians and gold standard experts would say;
When the Fed prints money it cheapens the value of a dollar, promotes inflation, and effectively steals money from the citizenry
Economic liberals and Roosevelt from his grave would argue
A fixed link between the dollar and gold would make the Fed powerless to fight recessions or put the brakes on an overheating economy.
Now, lets move over to a digital gold standard. What would serve that?
Imagine in a few years time every 16-year-old nerd school dropout can create a token on this smartphone and by making it popular through some kick-ass marketing can start a mini economy with its own currency.
Replace nerds with ICO founders in 2017 and Currencies with the top 20 crypto’s on Coinmarketcap, minus Bitcoin. And you get the picture.
Every seriously NOT from the start Completely decentralized crypto can become a 100000x worse printing token for nothing machine. Because it can create literally billions of tokens with the snitch of a finger.
The ability to create unbound digital money leaves the FED look like schoolkids copying dollars on the first 70ies RICOH copying machines.
These potential token-orgies must be limited to give them any value. Bitcoin is giving them that value, already now. Token prices are mostly expressed in Dollars of Bitcoin.
Imagine a world where the Dollar has seized to exist, and why not, it has done more harm than good to our planet.
Then only the expression will be in the digital gold of the future; Bitcoin. Or better, in relation to Bitcoin’s value.
I am not going to guess how much that Bitcoin price will be by then, I am happy enough when there are still fishes in the Ocean and butterflies in fields of flowers in 2140. Who cares about money anyway?
Published at Wed, 15 Jan 2020 20:21:19 +0000
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