sj_zero on Nostr: They kind of have to because it's solely a speculative asset. I did a huge post about ...
They kind of have to because it's solely a speculative asset.
I did a huge post about this a day or two ago. People buy bitcoin because they think someday it will be all the money and they want to own a significant percentage of all the money. The problem is that this use case doesn't actually involve buying anything with bitcoin.
A currency according to Austrian economists is something that works as a unit of account (how much does an apple cost?), a store of value, and a method of exchange. Presently, bitcoin fails all 3. The first and second because the price varies so wildly, the third because you can't really buy anything with it other than dollars.
I proposed a system be integrated into bitcoin that would grant incentives for using bitcoin based on the total GDP of bitcoin. The idea would be that you'd want to increase the money supply as the amount of goods and services bought and sold using the currency increased so the relative value of one bitcoin stays the same in spite of more stuff you can do with it. You'd also want to decrease the money supply as the amount of goods and services bought and sold decreased, so you'd want to increase service fees and destroy some of the bitcoin with every transaction to lower the total number in circulation, and all of these decisions would be done using a model predictive controller utilizing the known blockchain data set.
I recognize that to make such changes arguably you wouldn't have bitcoin anymore since its defining features would be eliminated, but as things go it's just a thing you buy because you want it to go up.
I did a huge post about this a day or two ago. People buy bitcoin because they think someday it will be all the money and they want to own a significant percentage of all the money. The problem is that this use case doesn't actually involve buying anything with bitcoin.
A currency according to Austrian economists is something that works as a unit of account (how much does an apple cost?), a store of value, and a method of exchange. Presently, bitcoin fails all 3. The first and second because the price varies so wildly, the third because you can't really buy anything with it other than dollars.
I proposed a system be integrated into bitcoin that would grant incentives for using bitcoin based on the total GDP of bitcoin. The idea would be that you'd want to increase the money supply as the amount of goods and services bought and sold using the currency increased so the relative value of one bitcoin stays the same in spite of more stuff you can do with it. You'd also want to decrease the money supply as the amount of goods and services bought and sold decreased, so you'd want to increase service fees and destroy some of the bitcoin with every transaction to lower the total number in circulation, and all of these decisions would be done using a model predictive controller utilizing the known blockchain data set.
I recognize that to make such changes arguably you wouldn't have bitcoin anymore since its defining features would be eliminated, but as things go it's just a thing you buy because you want it to go up.