Minz_highland on Nostr: I read the latest peace from (people working for) the ECB on bitcoin, called ‘the ...
I read the latest peace from (people working for) the ECB on bitcoin, called ‘the distributional consequences of Bitcoin’ (Bindseil/Schaaf) They make the case that bitcoin, if not a bubble, will transfer wealth to earlybirds, from non-holders and latecomers.
At the point where bitcoin will eventually be redistributed evenly to all people, early adopters will have used their bitcoin to buy other assets and their related income from latecomers, leading to an ultimately negative outcome for the latter, so they calculate.
My opinion on the piece, having read it once, is that they might initially be right (open to suggestions why not).
However, first of all, this expected outcome is exactly the effect the current fiat system is having now: widening the wealth gap in favour of those who were early.
The difference with bitcoin is that once btc has been equally distributed, well.. it will be equally distributed and no one is issuing more bitcoin to the early birds nor to anyone else. That is imo seems to be where the positive difference is. Not that everyone will be equaly wealthy, but everyone will have a chance to create their own wealth in a more level playing field. Latecomers who work harder or have better value adding ideas than early birds will be able to catch up and surpass them in wealth.
Admittedly, I think this might take a long time.
I’d love to hear Jeff Booth (npub1s05…eyhe) ‘s opinion on this paper.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4985877
At the point where bitcoin will eventually be redistributed evenly to all people, early adopters will have used their bitcoin to buy other assets and their related income from latecomers, leading to an ultimately negative outcome for the latter, so they calculate.
My opinion on the piece, having read it once, is that they might initially be right (open to suggestions why not).
However, first of all, this expected outcome is exactly the effect the current fiat system is having now: widening the wealth gap in favour of those who were early.
The difference with bitcoin is that once btc has been equally distributed, well.. it will be equally distributed and no one is issuing more bitcoin to the early birds nor to anyone else. That is imo seems to be where the positive difference is. Not that everyone will be equaly wealthy, but everyone will have a chance to create their own wealth in a more level playing field. Latecomers who work harder or have better value adding ideas than early birds will be able to catch up and surpass them in wealth.
Admittedly, I think this might take a long time.
I’d love to hear Jeff Booth (npub1s05…eyhe) ‘s opinion on this paper.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4985877