Why Bitcoin (BTC) still has a place in society, even if we don’t understand it.
Money is real, and so is Bitcoin — we know Bitcoin is fantastic; open up a Wikipedia-page about Bitcoin (or blockchain) and you’ll quickly realize the advantages of using such technologies today. It is real; because money in its essence is just anything that is accepted as payment for things. That’s it. There’s a difference between money and currency.
What makes it difficult, and why the problem doesn’t divulge itself at first, is connected to the failure to realize how societal and economic systems are built today. It takes a couple of reality checks to understand that Bitcoin itself doesn’t really have a place in everyday transactional situations; much like Gold. The difference being that Gold is essentially tangible and Bitcoin — you guessed it, intangible.
It stops there. Tangible and intangible. They are both commodities, they are both scarce, and, they are both not considered as payment methods, or currency used on a daily basis. Well, maybe.
The reasons, however, as to why Bitcoin should not be viewed as currency, or implemented in a society, are very simple to understand.
Firstly, it is about the societal structure and the way the state is used to stimulate our economies. We are state-dependent whether we want it or not, and this is not something new. We need the state to e.g regulate monetary policies to keep the structure in society and, among other things, attempt to stimulate the economy.
With Bitcoin, this becomes an impossibility. There are no authorities to control and stimulate the economy. Every country would be dependant on Bitcoin, countries would not have their currency, and, no state would be in place to retain the structure as it would not be in their control.
You might think that the only thing Bitcoin is doing is transferring the power from the state to the people. And sure, it would make sense, but here is one of the many problematic scenarios that could arise:
- You have control of the money and can regulate your monetary policy if you feel that the economy in your country is shifting.
- You remove your monetary control and accept Bitcoin (BTC) as a) the only currency in your country or b) the main currency in your country.
- Your economy is blossoming and you need to pay out more salaries as people are becoming employed at a higher rate.
- You can’t print out more money, and if you have spent all your Bitcoin (BTC), you can’t do anything (perhaps loan on short sight) but there is no way to print more money to pay out all economies (if all were thriving at the same time) because double-spending and printing of Bitcoin (BTC) is impossible.
This is only one of the many problems societies might face with Bitcoin. You can’t create money for your people, or employees, because Bitcoin cannot be printed, it is not affected by inflation and so you cannot hand out more money to other people, if more jobs are created.
Not only that, but you can’t control any sort of taxation if using Bitcoin, which country is which and who is taxing who? How would a country become rich? Would we only have a finite amount of Bitcoin and break them down to satoshis to be able to use it between countries?
Sure, that could be a possibility; but it then becomes a question of power. What if someone has 51% of the total computer power of the world? What country will have what money? How would the Bitcoin be distributed from its current state? There is too little control to integrate Bitcoin as a currency into society today.
And here is the thing, Bitcoin is not a form of currency. It should be seen as a commodity; it is more like gold, a store of value. It is not here to compete, it is here to be an alternative. And so it will be, for it is not ignored and left aside. People are using Bitcoin, and when enough people see it will fit, it will be used accordingly and properly. Much similar to the thoughts of Satoshi Nakamoto, we should not forcingly push out Bitcoin into society for we might not be prepared for it.
One thing is for sure, our society won’t be without cryptocurrency or blockchain, for it is already here.
Published at Thu, 05 Sep 2019 20:07:38 +0000
Bitcoin Pic Of The Moment
✅ This image from Marco Verch (trendingtopics) is available under Creative Commons 2.0. Please link to the original photo and the license. 📝 License for use outside of the Creative Commons is available by request.
By trendingtopics on 2019-03-27 09:43:43
