Please Jow Forums can we move past this whole crypto scam and actually use our collective brainpower to make it in real business? It's about time really.
Listen up because here is the redpill on bitcoin. Nobody will ever use this as a currency because it is deflationary and discourages borrowing. Economic growth mostly comes from borrowing and debt so by having your currency pegged to a static quantity of bitcoin any country that uses it will be limited in growth and no country wants that.
Let's be a bit more optimistic however and say that somehow this doesn't matter and everyone adopts bitcoin anyway. What will happen when businesses want to borrow and invest their loan to grow their business? Well whichever countries are smart enough will just start printing bitcoin IOUs and issue them as loans to be paid back later.
But wait these IOUs sound a lot like fiat currencies don't they? Well actually not yet because they are pegged to a set amount of bitcoin preventing inflation and ensuring that governments don't lend more than they have. But now businesses want loans and governments can't issue them because they don't have any more bitcoin to peg money to. So what happens next? Governments will either accept that they don't have any more money and their growth will have to stagnate until they jew more bitcoin from other countries or just get rid of the the stupid bitcoin middleware and start printing their own money that they can control and make sure that everyone can borrow money and incentivize economic growth.
So now that that's out of the way what is the next great ponzi that Jow Forums can be first in?
But what happens when all that debt goes belly up and society engulfs in revolution because the millenial generation refuses to pay the debts it was saddled with? Where do we go then?
William Allen
This is 100% correct, based and redpilled, but if you try to tell crypto retards like this they sperg out about ending the fed scream loudly so they can continue to ignore reality.
Bitcoin and crypto currency is fucking useless and will never be adopted. Inflation is a good thing but all these anarchists into BTC are too brainlet to realize that.
Sometimes I think the reason Chainlink gets so attacked/ignored by the rest of the cryptosphere and by multiple big other projects is because while crypto is this whole "fuck banks and government" anarchist movement of people who hate fiat and try to pretend USD is useless and wank off about sats. Chainlink is batting for the other team, just like Ripple. They are the on the side of big banks and government and that's why all of Links competitors try to shittalk it and claim they have better ideas of how to do an oracle. THey are only better if the goal is maintaining some anarchist society and not enabling fiat and the current establishment.
I think that Chainlink could possible kill Bitcoin and crypto as a whole and allow governments to just put fiat on the blockchain. You could have inflationary fiat, USD, EURO, JPY all on the blockchain and not more BTC.
Chase Walker
Still doesn't solve the issue of what happens when people stop paying the debt that underlies those currencies. What is the plan when that happens? And it will happen, global debt is 247 trillion USD and will never go back down until it collapses.
Alexander Adams
I love how these entry level retards do 1 hour of research and think they know everything. True 105ers. Stay broke.
David Lopez
lol the US isn't some third world shithole like Venezuela where the government has no idea what it is doing and actively tries to scam its people. That is how debt works. You never pay it off because you only ever have to pay the interest or a negative cashflow to your income. If you are not retarded your monthly debt expense can be paid off through income earned through investing this debt. And when you make more money from taking on debt you can afford to even more debt as long you are making money off of it. This is why governments can be trillions of dollars in debt and it doesn't fucking matter because let's say they will be paying $1billion in interest a month but because they are not brainlets they will be making $2billion a month from that invested debt. And the cycle continues until they have quadrillions in debt and forever and ever.
Now in the specific case you are talking about too many millennials were scammed by universities and took out loans for an investment that does not pay off for most degrees which will certainly cause problems down the road but this can easily be resolved by any government that knows what it is doing and millennials will teach their kids to wary of the university Jew and things will start to balance themselves out.
Brody Johnson
Do you ever wonder who the government is indebted to, and why those people would continue to loan to the government while knowing they will never be paid back?
Christ what a brainlet. Stop going to Jow Forums, Jow Forums has zero understanding of economics. Debt is a meme.
And what happens when the interest payments on that debt are bigger than any other budget expenditure? What happens if that generation doesn't want to pay that interest anymore? >Now in the specific case you are talking about too many millennials were scammed by universities Actually I'm talking as much about the debt needed to cover all of the programs like SS, military, etc. Sure our whole system of "just pay the interest lmao" works for now but what happens when the interest is overwhelmingly the largest part of the budget?
Admittedly you're right here >US isn't some third world shithole like Venezuela This is the only thing that keeps the sham going (for the US at least), we're so stable and fair nobody has anywhere else that's more stable to go to of this size, for the most part.
Oh and for the record, I'm somewhat of a crypto skeptic too but just because crypto might have issues doesn't mean fiat is good to go for another 100 years.
Julian Scott
>Jow Forums Could you use a bigger boogeyman, the talk about the debt issues spans the entire internet and tons of economists. Do you think Jow Forums is the only place in the world that has doubts about fiat being sustainable for another hundred years?
Jack Perez
No, not the whole internet, but on this website it's the root of all goldbugs and anti fiat, anti fed, anti inflation posters.
Jayden Morales
>Actually I'm talking as much about the debt needed to cover all of the programs like SS, military, etc. Sure our whole system of "just pay the interest lmao" works for now but what happens when the interest is overwhelmingly the largest part of the budget? Also the massive pension issues in places like California. Will the government just bail all of these out as well on federal dime? And what happens if states that didn't suffer this don't like it? Will we just let a major region like that default like several of its cities already have? Honestly, I'm not saying that would happen while the economy is at least decent like now, but the next time there's an economic collapse some heads are going to have to roll or shit will hit the fan somewhere.
Joseph Cox
>goldbugs please do not confuse me for some kind of retard that wants to trade in shiny metals for fucks sake
Brody Anderson
All of your concerns really boil down to how much you trust the US government to be responsible with its money and balance out how much it borrows and what it spends it on. In the case of the US I wouldn't bet too many others could do as good of a job. Not really sure what would happen if the US fucked up and collapsed though.
Well I am with you there fiat is not that great either it is also even worse to have so many people brainwashed into thinking that bitcoin is superior and will replace fiat when it is simply not true at all from any fundamental standpoint. When it comes to crypto I think the only real chance is for an inflantionary coin that has instant and free transactions like stellar and ripple and fuck even dogecoin is a better candidate than bitcoin.
David Hill
oh and while I'm at it, I'm not anti-inflation entirely some good points have been made here but it doesn't change the fact that countries are not behaving responsibly with the long term in mind. Yes everything they are doing is sound in the short term, but it's setting the stage for long term consequences that will have to be dealt with by somebody. You can't just say "it will work out" because at no point in history have things ever been this leveraged save for perhaps during wars, we have no long term cases to base all this on because it's never been done before. Unforeseen consequences are abound and without something of a plan that has sustainability built in, the risk of an unknown variable factor causing problems because greater and greater as time goes on.
All that said, maybe we can just go on printing forever because the only countries that could fuck us over for doing it can't seem to stop being oppressive shitholes long enough to steal the rest of the world away from us (or force us to wage the war we've all been waiting for when they do, reminder what happened to Gaddafi) or (in China's case) their rise is so tied to our debt that any attempt to fell us will simply fell them as well.
Jackson Mitchell
A good idea should be explainable in less than 10 minutes. Having to do hours of research to convince yourself a concept will work proves it is a bad concept.
Jason Sanders
Uhh user Idk about what you posted right there.
Gabriel Ward
The issue isn't just the federal govt though, it's some of the massive state ones as well as I said here . Yes the Feds do a better job than most of allocation but some of the states are going full retard, acting like Greece to the US Govt's Germany/EU (maybe not that bad but you get the point)
At some point all of these states making all sorts of impossible to keep promises are going to have to come home to roost. Either by forcing those states to fix their shit the right way (good), by letting them collapse (bad), or by bankrolling their retardation to the point it causes societal unrest and civil war between the states. I could foresee a situation where California absolutely refuses to change but the Govt of the future absolutely refuses to bankroll them. What happens then?
Either >The govt backs down and bails out (other constituents very very angry) >California collapses (California angry) >magic third option??? California changes peacefully?
And you can't look at California today and hope for much political change, their last election for senate was between two people of the same party, they are effectively becoming a one party state within America. Not entirely by any means but internally, yes. And they're a direct democracy state. Meaning if some group of nuts gets some retarded measure onto the ballot and all the goobers vote for it then what? This is sort of way off-topic of crypto but still a big hurdle for fiat to clear that is coming in the future and basically unavoidable at this point (barring some amazing black swan changing everything)
Samuel Phillips
Well it's a pretty standard business proverb, of course Jow Forums wouldn't know about it
Jackson Phillips
I can't say I know the answer to this except that I like the idea that this kind of thing can happen in the US. By separating the feds and states it opens up opportunity to evolve without taking down the whole country if something goes wrong. For your California example the state it is in currently seems very radical but what if it works? By allowing for this diversity between states the country can have a survival of the fittest scenario where what works can be adopted and what doesn't can be fixed. So going back to California let's say it collapses because the people there are brainlets. The state can be bailed out and the country will take a hit but not a critical one and as a whole can learn of the lessons of why not to be like California.
Ryder Jackson
>The state can be bailed out and the country will take a hit but not a critical one and as a whole can learn of the lessons of why not to be like California. I'd agree with this model if it weren't for the fact that Californias "mistake" also involves selling off land power and influence to the highest international bidders (say China, and others) and that creates a series of very serious security issues for the country, particularly being a pacific port region. (not to say they're the only one doing this)
And in addition to that failure risk, you've got the issue of whether or not California itself will learn from it. With the way things are going it's pretty predictable that they won't so what then? When California gets bailed out and specifically warned "stop doing this" and then they go and do it again and need another bailout (already happened with the city of LA multiple times) what do other states do? Tolerate it and piss people off to astronomic levels? Try to establish control over them and shut them down some how? Let them go (obviously a non-option)?
Ryder Richardson
>Listen up because here is the redpill on bitcoin. Yeah no thanks kid. Save the essays for school.
Jaxson Stewart
>who the government is indebted to I'm gonna go with weird rothschildian string-pullers or China for 200, user
