Fed Chair Jerome Powell on 60 Minutes: The US is on an unsustainable economic path
Fed Chair Jerome Powell on 60 Minutes: The US is on an unsustainable economic path
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“We mostly try very hard not to comment of fiscal policy and instruct Congress how to do their job, when they have oversight over us,” said the head of the US private bank cartel.
These finance industry capitalists run the country. They are major donors to politicians’ election campaigns, and they have a revolving door between major corporation C-suites and the US Treasury and other federal regulatory bodies: Regulatory capture.
Regulatory capture is exactly why we should not trust a single, centralized entity to print the global reserve currency.
Bitcoin, with its fixed supply and decentralized production solves this. It is immune to regulatory capture.
Regulatory capture involves:
- A centralized entity which has power
- Influencing that centralized entity.
Bitcoin is decentralized and immune to influence. No matter how rich and powerful you are, you cannot print Bitcoin that is not meant to be printed and you cannot spend BTC which you do not hold the private key to. Period. Rich, powerful people are used to having outsized influence in our legal and political systems, but they are subject to the same laws of physics and math as the rest of us.
Other advantages include:
- The ability to transact for everybody on the planet with access to a cell phone and a halfway reliable internet connection. Including the billions of people who no access to stable banking infrastructure "the unbanked".
- Bitcoin has a clear economic policy: There are 21 million BTC total, no more will ever be printed.
- With Bitcoin lighting, transactions settle in under a second and cost pennies in fees.
- It has functioned 365 days a year, 24 hours a day without a single hack, bank holiday, or hour of downtime for 15 years.
- A market cap of 850 billion, in the top 25 countries by GDP, higher than Sweden, Vietnam, or Israel. Consistent growth in adoption year after year no matter how you measure it. Big banks and hedge funds invest in it because its simply better currency, they see that it is useful.
- And it does this for <1% of global energy usage, mostly from renewables.
Oh right, I remember now, your whole thing is to shill cryptocurrency bullshit.
The only thing that guarantees Bitcoin's worth is thoughts and prayers.
The US government has aircraft carriers.
People don't use USD because the US will bomb them if they don't. They use USD because they trust the fiscal policies of its issuer and many places accept USD (network effect). Not every country likes using USD because we use it as a tool of imperial control over others, so sometimes they choose other currencies. Not often though, because they don't trust the issuers of those other currencies.
Bitcoin has fiscal policy that is backed by math and physics instead of the whims of a national government and its network effect grows more each year. Only time will tell if that can result in Bitcoin becoming a global reserve currency.
A powerful entity backs the USD is the point. Military might provides a certain level of stability. It's not about forcing the use of the dollar; you don't have to.
Bitcoin is hot air and a poor use of electricity.
Really decentralized when two groups hold 54.3% of all mining activity and historical precedent shows that miners always side with the whales, which are people made rich in the old financial system and who now hold even more influence in the space.
Indeed, given that hard non crypto cash and the compute power it buys is the ultimate decider on the protocol, updates, and which fork is the correct one, Bitcoin would seem to be a system which removes any semblance of power over the monetary system from elected leaders and explicitly gives it to the rich.
Also, why is having a set unchanging hard limit on total supply that important?
The braindead answer is something to do with inflation, but outside of hyperinflation the total money supply has little if any impact on inflation. BTC actually demonstrates this quite nicely, given that it saw over three hundred percent inflation between November of 21 and 22, despite there being a slight decrease in the total money supply. While those months were chosen for dramatics, Bitcoin’s swings from rapid inflation to deflation and back are wild when compared to even poorly managed third world currencies.
- Pools became more centralized for reasons of economic and energy efficiency. Pools themselves do not actually have any hashpower, they simply relay the results of mining to the rest of the network.
- They have never performed a 51% attack because every incentive is aligned against doing so.
- Pools have been getting more decentralized in recent years due to protocol upgrades.
- What you can do with a 51% attack is extremely limited. You can't spend anybody else's money and you can't print BTC which isn't meant to be printed. The only thing you can theoretically do is a double-spend, and pulling that off is basically impossible due to the amount of value you need to transfer extremely quickly, nobody being able to hand you a billion dollars of oil in 30 minutes, and needing to wait for multiple block confirmations for a purchase that large.
- Anybody in any country with electricity can mine Bitcoin. If you want to be real efficient about it, you spend a few hundred to a few thousand USD for an ASIC
- Energy is the most equitably distributed resource in the world. It falls from the sky. It runs in every river and gust of wind. It is in the crust as uranium.
Also, why is having a set unchanging hard limit on total supply that important?
Because otherwise somebody else is printing that currency and transferring value from your currency to whatever they want to do with it. And if we give an authority the ability to print currency, they may be a great custodian of that trust until they aren't. Historically, for the most part, government haven't been, they've just been the best solution so far to the problem of who to trust with the currency supply because they were the most stable institutions humanity had ever built.
Bitcoin's value relative to the dollar is unstable, yes, but it's more stable than many other currencies out there. And it's stable relative to its own supply. 1 BTC will always be 1 BTC. No fiat currency can make that promise. Stability improves with scale, the more people use it, the more stable it becomes, same as any other currency.