Bitcoin Forum

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Let's talk about this thing: How to create Ideal Money?

Why don't we call our hypothetical perfect currency, let's say, ASSETRIX. There is double meaning in this name:

1) an ideal currency of the future that must be totally asset-backed.

2) an ideal currency that is to become the global reserve in the future

Is it even possible to create such ideal currency?

What features should it have?

Please share your thoughts and opinions.

Are you new in crypto?

We already have a few companies who created currency backup by real-asset like money (USD), Gold, or other assets as well. Non-inflated money you're talking about, the main priority is to make the transaction more easy there is no point taking a profit on this type project because the value will be always same follow the backup asset they're using.

I guess someone is trying to join the hype train but a bit too late hehe. I'm not sure this is going to help but just take a look at the asset-backed cryptocurrencies in existence and see if you could improve them. Maybe you should also think of the protocol this coin is going to use.

Yeah it's going to be impossible to make a currency completely asset backed and a global reserve, you can have one or those you can't have both.

Firstly, only north America, Australasia, Europe, half of Asia, and parts of Africa have full asset ownership laws and even then governments can request to buy back property or seize it. So your new currency isn't globally backed anymore.

Secondly, is there going to be successful crash mitigation? If the whole stock market drops 20%, is everything a few % higher to make up for it?

If you pick an asset like gold, what happens if a new mine with a large amount of it in is found, does it also crash? There's no reasonable way you can inflate something that exists too that governments or people will accept imo.

Backed by what kind of assets? Sounds like what can be done with token or even as NFTs.. . But I actually prefer those that can be backed more by physical assets.
In my opinion, the assets have to be divisible like good money are supposed to be else it can't really be ideal form of money...though you can solve the problem of divisibility by locking up the asset and have its equivalent worth in a divisible currency for buying things, once you spend all the money, you nolonger own the locked asset

Our world is not ideal so we can’t have ideal money as well. Satoshi created Bitcoin as a replacement for fiat money. Of course he wanted it to be the ideal currency, but even Bitcoin has many drawbacks like problems with scalability and energy consumption.
As far as I am concerned, the main features of ideal currency are user-friendliness and wide use, so people can use their money in a fast and comfortable way everywhere.

Hello. Thanks for your answers!

Absolutely, there are many stablecoins now that have financial provisions behind them. But none of them can take the place of ideal money.

1) If we look into centralised custodian currencies like USDT, their provision is very questionable. There is no way how one could reliably check the level of provision behind them, and, most importantly, there is no way how one could exchange these coins for a provision from the currency issuer (Tether company).

2) Centralised stablecoins like DAI are better in terms of transparency of their provision.

However, in both cases, stablecoins are not suitable for becoming ideal money.

By ideal money I mean not only the money supported by assets, but also the ones that are perfect for accounting and for saving. In other words, money with no inflation.

Let's say, we managed to create such money, without inflation, with full provision, and call it Ideal Reserveum.

What are the features of an Ideal Reserveum?

Who should regulate its emission, and how?

How should one form its provision?

How should one define its price?

Meanwhile, this is what going on in the world of stablecoins:


USDC issuer started creating "a global network of stablecoins".

The Centre consortium started a project for distributing USD Coin abroad.
The company already formed a team for managing the project and started negotiations with foreign partners about launching USDC in countries of Africa and Asia.

The Centre is planning to use stablecoins to make money transactions cheaper. Also, the company representatives mention that they might issue stablecoins that would be connected to other fiat currencies. It is planned to start the distribution of USDC with the countries of Europe.

Today, USDC stablecoin is present in Tron, Ethereum, Solana, Algorand, and Stellar. It is planned to issue the coin based on Polkadot, Avalanche, Hedera, Celo, Nervos, Flow, Kava, Stacks, and Tezos.

Another ambitious project of the issuer company is to use USDC as a payment method. This is why they are planning to integrate USDC into NFT, non-fungible token, system.

One more step in this direction is signing a contract with Visa company that has already linked its global system to USDC and started testing the account system in USD Coin.

We would like to remind you that USDC, unlike USDT, has a stronger regulatory base behind it, yet it can't be considered a perfect currency for payments due to its strong relation to the US political decision and the unpredictable SEC.

The day before yesterday, Tether processed an emission of one billion USDT on the TRON platform. The Tether CTO Paolo Ardoino claims that this is an autorised, but not an issued transaction, which means that these stablecoins will be used as inventory units for issuance requests in the future and as chain swaps.
According to the official report on Tether activity, the total amount of USDT in TRON is equal to 32 billion USD. In other words, over the current year, Tether turnover grew by 300%.

Other stablecoins are also growing: USDC capitalisation in 2021 grew by 600% - from 3,7 billion USD to 27.59 billion USD; DAI stablecoin grew by 380% - from 1,1 billion USD to more than 5 billion; the number of Binance stablecoins BUSD grew by 1230% - from 980 million to 12 billion tokens.
The further growth of Tether is so far contained by legal investigations and audit revisions of company assets. If the revision results are positive, it will return the attention of investors to Tether and the USDT stablecoin will continue growing.

We can see that Tether is inevitably gaining traction, but it is still questionable if the whole volume of Tethers and their cash cover are equivalent.
Even if we accept that Tether is 100% covered with convertible currencies, the mechanism of receiving this cash cover from the issuer remains completely unclear.
Can we call Tether an ideal currency? We don’t think so, what about the forum users?

The e-Money protocol is about to integrate their stablecoins into the Algorand blockchain platform and connect them to European currencies.

E-Money expects that after this partnership with Algorand, they will be developing faster and will manage to scale up their apps for accounts in currencies that have become popular with European users. These are stablecoins based on Euro (eEUR), Swiss Franc (eCHF), also Swedish (eSEK), Norwegian (eNOK), and Danish (eDKK) Krones.

Users' trust in e-Money stablecoins is associated with the fact that these tokens are supported with a reserve that consists of bank deposits and government's obligations, as well as quarterly audit revisions by Ernst & Young.

According to David Markley, the Algorand Director of Business Solutions, "Integration with e-Money will enlarge the common access to the Algorand ecosystem and will help the European market grow for many innovative and useful protocols in the network, from DeFi solutions to NFT trading platforms, and more."

We would also like to remind you that a year ago Algorand Foundation launched a business accelerator to support European start-ups in the blockchain ecosystem. To support such initiatives within the Algorand ecosystem, the Arrington XRP Capital company created a foundation of 100 million USD.

Also, last week Algorand Foundation opened a fund for developing DeFi projects. The company gave 150 million native ALGO tokens, which is equivalent to 318 million USD at the moment when this article is being written.

The American CryptoFed company, registered in Wyoming as the first decentralised autonomous organisation (DAO), sent a request to the United States Securities and Exchange Commission (SEC) for registering and trading an algorithmic stablecoin Ducat and the Locke governance token that is used to stabilize the first one.
Both coins will follow a service function in the blockchain designed by CryptoFed based on EOS with a DPoS consensus algorithm.

It turned out that CryptoFed made their application by Form 10 which is normally used for the registration of securities on stock exchanges. This is an obligatory requirement for companies with capital over 10 mln USD and with a number of stakeholders exceeding 750; the rest can take part of their free will. So now The American CryptoFed can expect their tokens registered within the next 60 days.

Officially, the Ducat stablecoin is presented as an asset safe from inflation/deflation that is used to save capital and make "free" transactions with high capacity. The Ducat rate will be stabilised by the Locke governance token. According to Marian J. Orr, a CryptoFed representative, managing the Ducat rate with the help of Locke is quite the same as the actions of the Fed in the open market.

If Ducat and Locke are successfully registered as securities, CryptoFed is planning to request permission for new emissions of tokens according to Form S-8. This will enable them to continue distributing non-traded and disqualified Locke freely as a stimulation.

Thus, The American CryptoFed is expected to become the first-ever company with crypto officially registered as securities. This was all possible due to the fact that Wyoming accepted a law that made cryptocurrencies equal to money in 2019 and to the times when crypto start-up Avanti and Bitcoin exchange Kraken were awarded the status of financial institutions back in 2020.

The idea to make a coin protected from inflation and deflation is really relevant now, however, the authors of Ducat don’t share the methods that help them reach this stability of the coin’s purchasing value. Looks like these will be centralised methods. Which means that these methods will be similar to the methods the Fed uses to USD, yet the inflation for dollar is not equal to zero.

Which means that Ducat is another pseudo-stablecoin. What about you, dear forum users, what do you think of it?

Bitcoin can become a non-inflationary global currency when it reaches a certain stage, and I think there is currently no such token that has reached a non-inflationary currency other than Bitcoin.

It will fail to do so because the current financial system is too big to be linked to any asset, and many countries have printed trillions of dollars in the past year, so unless there is a third world war or a pandemic that leads to real changes, it is difficult to make fundamental changes in the current system .

Gold will fail to be a reserve of the currency, and therefore the closest is silver to be a substitute, provided that gold remains usable and some other psychological metals.

Digital money are good for reducing spending on printing money, but they will not resist inflation, but will only make it worse.

A US Congress senator Cynthia Lummis declared requirements to stablecoins emissions, the main of them being: to supply stablecoins for 100% with cash reserves or its equivalents, and obligatory for all stablecoin issuers to have a status of a bank or a money market fund. Also, Ms Lummis outlined that it is necessary to perform regular audit checks of issuers.

Ms Lummis is known as crypto supporter. In 2020, her programme included discussing Bitcoin on a national level. In August 2021, Cynthia Lummis was one of the authors of an amendment to a crypto infrastructure law - they were asking to exclude some companies of the crypto industry from the taxation plan. Today, on September 30th, there will be final voting on this law.

The main source of argument is the generalized definition of a 'broker' that is supposed to be given to the majority of industry participants, including non-custodian ones: miners, node operators, wallet developers, liquidity providers in DeFi protocols, etc. It will make them report users' operations to the Department of the Treasury, the US tax agency.

The US Ministry of Finances is also planning to introduce measures for stablecoins regulation. For instance, in September their plans to make stablecoin issuers provide for their easy converting to fiat became widely known. In the July session, they discussed perspectives for stablecoins and potential risks for end-users, the financial system and national security.

Stablecoin issuers show that they are partly or fully ready to accept regulation and taxation. In August, the Centre consortium that issues USDC declared its intention to transfer the token reserves into USD and government bills. USDT Tether Limiited issuer noted in its July report that the proportion of the funds and bank deposits that can be withdrawn in two days and less amounted to around 10%. Paxos company confirmed having 100% supply for every USDP and BUSD with US dollars or its equivalents.

Of course, fiat money cannot be fully supported with liquid assets, moreover, it is impossible to exchange fiat money for this asset instantly. It is about digital money.

Creating digital money protected from inflation with purely mathematical methods seems quite possible to us.

All we need is to create a mechanism to syncronise the value of emission of such money and goods inflation. Then the value of such money would change along with the rising value of the goods.

According to my teacher of economics at the university, the ideal currency shouldn’t be asset-backed. That is why he puts crypto above fiat money. How can it be? Actually, if we just agree with each other that this good is worth this sum of our ideal currency, we don’t need a collateral. Also, ideal currency can be transferred and used at the discretion of the person and mustn’t be controlled by anybody.

There is no such thing called "ideal Non-Inflated money". The market keeps evolving and changing as we speak, both for crypto and real fiat. So trying to find a way to making it non-inflated is a moot point since no such thing exists. What you should instead be trying to make your coin or money have a goal, a purpose, and a reason why people should adopt and use your daily.

Security of personal data is very important. It is necessary to create demand in the coin and have a limited issue of the coin. In such case the price of the coin will grow.

People must be sure that their data is secure and nobody can use them without agreement of owner of the data. To do this it is very important how secure the data is hold.

Every coin that already has developments and useful products for its users to use, the security system clearly already exists and will continue to be applied to the platform system at all times, because this is very important apart from the market price, so it will be a loss if Popular coins don't have this.

Security of information and personal data is very important. Now there is demand in secure storage of information. Many people takes care about their personal data.

Bloomberg Press investigated the reserves of Tether stablecoin, and the results shocked the financial industry. Among others, USDT turned out to be tied down to such assets as short-term loans for large companies from China and loans for crypto-loan platforms like Celcius Network, and others.


The high attention of the US financial regulators to USDT tokens is no coincidence.  The stablecoin emission reaches 69 billion USD, with 49 billion tokens issued only this year. Such volumes could place the token issuer, Tether Limited, among the 50 largest banks in the USA, but the lack of transparency makes it an unpredictable and dangerous structure.


There were many accusations towards Tether Limited: lack of supply with USD, scarce information about the company leaders, giving out loans with a high risk of default. In media, Tether issuer is called 'an offshore hedge fund with a high risk level' and a potential fault of a crash of the whole crypto economy.


Meanwhile, Tether Limited continues rejecting all accusations and calls the Bloomberg research a compilation of unconfirmed speculations and an attempt to undermine their leading position.


A report by an audit company Moore Cayman on July 30th, 2021, confirms that USDT is fully supported by Tether Holdings Limited reserves that include: commercial securities amounting to 30,8 billion USD (49%), fiat and bank deposits that can be returned within 2 days and less - around 6,28 billion USD, or 10%, and US tax anticipation bills with a maturity less than 90 days and amounting to 15,3 billion USD (22,5%).


As Joe Biden's Administration has a project to include stablecoin issuers into the same legal framework as banks, Tether Limited with its full transparency might claim the place of the first crypto bank in the world. But an obligatory condition of it is a guaranteed free conversion of stablecoins into fiat, which at the moment doesn't look quite possible.


So, Tether stablecoin has been raising suspicions of not having any reserve at all for several years. Now, when the fact of supplies ties the company down to unreliable assets, the token reputation is in great danger.  :o
We were wondering, what scenario could make USDT more resilient - not being supplied with real assets or being supplied with the capitals from communist China?

Distribution helps to increase the security of information and it helps to protect personal data. Also distribution helps to safety store different kind of information of personal computors of different users.

Well of course any decent crypto out there wants to make big have to take care of the security side of their crypto. No matter inflated or non-inflated.

People have more and more information, they need to store all this information and they need a security of information storage.
Blockchain allows to safety store information.

Now secure storage of information is very important. All information can be hacked that is why people pay attention how secure is the storage of information.

In its recent report, International Monetary Fund attacked cryptocurrencies in general and stablecoins in particular. According to the Fund representatives, stablecoins are not reliable enough to become a part of the international financial system. Among the vulnerabilities of stablecoins they listed non-transparent emission and distribution, risk of breakthroughs, instability due to high volatility.

IMF analysts called the regulators of developing countries down to prevent losing control over cryptocurrencies - it could be facilitated with the lack of the legal framework. The report outlines that cryptocurrencies and stablecoins may bear serious danger to unstable economies.

IMF calls the international financial community to introduce global standards for crypto assets, which, according to experts, may prevent 'infection' of other markets.

"As the capitalisation of the crypto market grows, the importance of these risks to macroeconomics may grow as well", so commented the specialists.

Recently, IMF has been calling to strengthen regulation of the crypto industry more and more often. It may be a reaction to such events as legalisation of Bitcoin in Salvador, the introduction of free conversion of USDC to USD in the MoneyGram platform, and other signs of popularisation of cryptocurrencies.

We believe that the regulators may have some ground for being worried since they risk losing control over both the shadow economy and the population's finances, should people switch to cryptocurrencies more. What do you think, is this scenario really threatening or will the cryptocurrencies remain a by-product of the financial world?

Cryptocurrency industry is actively developing in different spheres. Now many projects use non-inflated coins and tokens to increase their value.

I think that first of all it is necessary to create demand in the coin. Coin must be useful. More people use the coin, more demand - higher price of the coin. And it must be a limited issue of the coin.

I think that the most important thing is not to create a Ideal Non-Inflated money but it is necessary to promote the created coin to increase its ecosystem.

Now many coins have a limited issue and burn of the tokens. But to create a demand it is necessary to increase the number of users of the project, continue to develop project and increase its ecosystem.

I think that for every Non-Inflated coin it is necessary to create demand in this coin.
To do this promotion is necessary. The coin must be useful for people and it is necessary to continue to develop a project.

As it became known USDC issuer launched the stablecoin on Hedera Hashgraph blockchain. For Hedera Hashgraph, it is the first stablecoin.
According to the company's representatives, this is an important step towards simplifying the development of DeFi applications.

Hedera Hashgraph uses directed acyclic graphs (DAG) without grouping transactions in blocks. This technology enables it to reach high capacity (up to 10'000 TPS), low delays, and high energy efficiency.

Last month the Hedera board approved a plan to invest 10,7 bln HBAR tokens (around 3,85 bln USD) into the development of the ecosystem. HBAR Foundation will distribute grants between developers, startups and other projects that work on implementing Hedera network in DeFi, NFT, CBDC, gaming, and other industries.

The board includes 23 companies, including Boeing, Google, LG Group, Nomura Holdings, Deutsche Telekom, Tata Communications, London School of Economics and Political Sciences, etc.

According to Shayne Higdon, the Head of HBAR Foundation, the support from USDC will open such opportunities to the network participants as securitization and supply chain tracking platforms.

So now Hedera Hashgraph is the sixth blockchain in USDC family. The stablecoin also works on Ethereum, Algorand, Stellar, Solana, and Tron. They are planning to launch the token on Avalanche, Celo, Flow, Kava, Nervos, Polkadot, Stacks, and Tezos.

Looks like people see great potential in USDC for applying it in different areas of the digital business. We were wondering, dear forum users, do you think such investment projects are rational?

At the recently held Money 20/20 conference, chairwoman of the Federal Deposit Insurance Corporation (FDIC) Elena McWilliams said that state regulators have begun to develop standards for interaction between banks and the crypto industry. One of the key tasks of the project is to create conditions for the development of innovative technologies and risk management.

According to McWilliams, the spontaneous existence of the crypto-industry without clear regulation can have a negative impact on the development of the innovative field itself and deprive America of leadership in digital technology development.

Currently, the FDIC, the Fed and the Office of the Comptroller of the Currency at the U.S. Treasury are deciding what role banks will play in operations involving cryptocurrencies. According to the FDIC chairman, the regulators will present a series of related policy statements in the coming months.

Stablecoins received special attention at the conference. Once again, the need to regulate tokens on such points as asset security and financial stability of issuers, as well as strengthening anti-money laundering measures, was emphasized.

The standards under development will regulate the storage of cryptocurrency to secure trade transactions, its use as collateral for loans and even the opening of accounts along with fiat currencies. It also became known that the FDIC is considering the possibility of direct deposit insurance in banks issuing stabelcoins.

It seems that American regulators have seriously decided to take the cryptocurrency industry under full control, which actually contradicts the very idea of digital currencies. Do you think this will lead to the decline of the crypto market or will regulators be unable to cope with the scale of a decentralized financial system?

Problem 1: Inflationary Pressure

As we all know, inflation consists of two parts: Supply push and Demand pull. Altogether, it means that the money supply is in imbalance, and so is the amount of goods and services circulating in the economy.

But there is a solution! If someone develops an automated mechanism that would monitor the current volume of the market for all goods and services. Then more money should be issued only when there is an increase in the volume of the real market.

Problem 2: Lack of elasticity in money supply during an economic crisis

Economy does not grow all the time, and we in 2008, and then 2020 witnessed how easily it can reduce by a significant degree. What do governments do in such cases? They issue even more money to “support” the economy, while what should be done is absolutely opposite.

How is it possible to reduce the money supply once the economy is losing its power? The solution is simple: develop a physical mechanism that would destroy excess money supply and return a proportional share of a reserve that supports the money market.

And you, dear forum users, have you ever thought about such opportunities in this economy? Do you think that it is possible to overcome inflation with these solutions? We are waiting for your reply!

We have already talked about such problems as inflationary pressure and the lack of elasticity in money supply at crisis. What else might be the cause of the huge inflation that we are living with right now?

Problem 3: centralized issuer

Many fiat and even some digital currencies have one centre where it is decided to issue more of that currency or not. For instance, for fiat money it would be the government, while for cryptocurrencies such as Tether it would be their founder and owner, Tether Ltd.

In other words, it is not such automated mechanism that decides how much money should be issued, but a person or a group of people with all the flaws that human brains have to offer. Instead of adjusting the size of money supply to the volume of goods and services in the economy, they continuously expand the money supply in order to lend money to the economy and thus push it forward.

Also, one more thing that a centralized issuer almost always fails to do is to provide a considerate reserve of the currency and monitor the quality of these reserves’ structure.
The solution we have come up with is to introduce the economy to decentralized money emission mechanisms, like the ones that blockchain has to offer. Then we all can go through a transition to digital money that has a transparent protocol.

Problem 4: not enough liquid reserve

As we have already mentioned above, centralized issuers often fail to save up enough reserve that could be easily transformed into valuable resources.
Throughout centuries, money was made of precious metals that were the reserve itself. Later, with the introduction of paper money, the government was the one responsible to provide enough resources, such as gold, to reserve and balance the system.

However, after the Bretton Woods Conference in 1944, gold has been losing its points as the major reserve for the whole monetary system. Then finally, in 1971, the USA declared that its money was no longer tied down to the golden standard, and then the economy stepped into a completely new era. We can even say that the money of today is not backed up by anything, it is pure air and ideas in people’s minds. The only thing that matters is how reliable is the country that issued some currency.

What can be done here? Every emission of money has to be protected by a reserve of an equivalent liquid asset. Whenever the money supply is decreased and the excess money is destructed, the reserve has to be returned to the issuer.

These are the problems we see in the modern monetary politics and the way we could deal with them. What do you think about it? Do you believe it is possible to create such non-inflationary money?

Crypto exchange Bitso, one of the largest exchanges in Latin America, along with Circle, the USDC issuer, works on a system of trans-border transactions between Mexico and the USA.

The goal of the project is to create conditions for a convenient and swift money exchange between companies and individuals of the USA and Mexico. These transactions are supposed to deal with a number of the problems that exist now, which are: limits for transactions, high operation costs, and delays, which are characteristic of the banking system.


The new instrument, named Bitso Shift, uses crypto to operate cheap and swift trans-border payments that are available 24/7 and help people exchange Mexican pesos to USD Coin stablecoins that are supported by the US Dollar. According to their press release, payment transactions with Bitso Shift are performed within 24-48 hours. All transactions are operated by fully regulated financial institutions.


According to the World Bank, in 2020, the volume of transactions between the USA and Mexico grew by almost 10% and reached nearly 43 billion USD. There are many Mexican ex-pats in the USA who regularly send money back home. However, many country residents have no access to USD accounts.


And since the trans-border exchange between the USA and Mexico is believed to be the world's largest exchange corridor, the Circle and USDC see it as a great opportunity; Jeremy Allaire, the Circle CEO, agreed to that saying: "We are happy to join the Bitso Shift initiative that demonstrates that the blockchain technology can lead the world to high-scale, effective and profitable solutions."


As you see, cryptocurrencies can help people solve their problems quickly and effectively, the problems that were there for decades and couldn't change because of the complexity and monstrosity of the standard financial system. What do you think, dear forum users, would you like to use quick and cheap transactions with stablecoins?

Regulating stablecoins and their issuers can have a positive impact on the whole industry - this is the opinion of Fitch Ratings from their report. They believe that lack of transparency hinders the stablecoins market from normal functioning and lowers the potential of tokens.


The first large economy to offer a legislative draft for the stablecoins market is the European Union. The USA is also considering an opportunity of regulating digital money issuers and operators along with banks. Fitch highlights a special role of the USA in implementing the regulation since most of the existing stablecoins are quoted to USD.


First bank licenses owners who can officially work with stablecoins will have enormous perspectives and advantages compared to the current banks and operators. If it happens, the whole financial industry will change.


According to Fitch rating, the guarantee of stablecoin holders' rights, transparent reports and issuers' publicity will raise users' trust and bring the stablecoin market new investments.
As you see, the regulation supporters continue finding new arguments for stablecoins transition to official currencies. However, everyone omits the main question: why does anyone need centralized and legal cryptocurrencies? In fact, they will turn into money units like USD and will not differ from money on digital wallets.


What do you think, do stablecoins need regulation or is it better without it?

The ideal monetary currency would be one that neither gains value (deflationary) nor loses value (inflationary). If it were deflationary, it would not be good money because everyone would just hodl in the certainty that the money will be worth more in the future and therefore they could buy more with it. Thus, the economy would then suffer extremely and jobs are cut. If the money were to lose value, then the opposite would occur. People would rather buy things today than tomorrow, because they know they can afford less in the future. Therefore, the ideal case would be if the currency did not fluctuate at all. But how that is feasible is the holy grail, since a currency, like other goods and assets, is subject to trade and demand, and thus gains or loses value one way or another.

Thanks a lot for your answer. You are right.

We believe that the ideal money is the money that keeps its purchasing power in the long-term perspective.

And in the short-term perspective, the ideal money can both grow in price (deflate) or fall in price (inflate) depending on the proportion of money supply to the economy volume.

However, it is best to eliminate the periods of the money purchasing power falls with the help of, say, money supply compression.

Reserveum Group reviewed this phenomenon in our new article "Tulip Mania and Green Men" (https://medium.com/fair-digital-money/tulip-mania-and-green-men-2db4bb7668e8)

As far as I know bitcoin already fullfils this goal with its limited supply, not increasing the inflation by printing money like our governments do with their traditional fiat currencies.

I don't see how Reserveum could be more efficient than bitcoin on this matter. There are already thousands of altcoins in the crypto market, and most of them don't have any use at all. I would like to expect yours isn't one of them, although I'm pretty sure it is!  :-X

Ideal money should not depreciate at all

Good for you - Bitcoin is limited in its creation volumes, indeed. It is this limited emission that makes Bitcoin such a rare good and pushes its market value up and up.

Market trading volumes of Bitcoin do not correlate to the volumes of economy. What defines ideal money is elastic supply - an ability to promptly grow and diminish in its volumes, depending on market demand. This is what Bitcoin lacks. Its creation volume is pre-defined and can not be changed.

Elastic supply means our money is under constant menace of manipulation by a central authority, that is very dangerous. I think the pre-defined supply feature of bitcoin is great. After all, when we start playing a game we don't want the rules to change at the middle of the match, just because player A or B is at an unfavorable position.
Bitcoin ensures the rules are the same, from the beginning to the end, for everyone and actually I could say that is one of the main reasons why it's pretty valuable and demanded right now.

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 Here is a thorough article  (https://reserveum.org/research/blockchain/why-does-a-cheeseburproblems-creating-non-inflationary-currencies/) about the reasons behind growing prices on cheeseburgers. In this article, we have looked into the problems of creating a non inflationary currency, such as:

- Problem 1 — inflationary pressure

- Problem 2 — inelasticity of the money supply during a slowdown of the economy

- Problem 3 — centralization of the issuer

- Problem 4 — lack of liquid reserve.

The article also offers solutions to these problems that can help us create a better currency for the world of the future.

Seigniorage: how to make billions on money emissions

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Is it possible to make billions from nothing?

How does this work in the real economy of a real country?

Read it in the new  article by RESERVEUM Analytical Group (https://reserveum.org/research/economics/seigniorage-how-to-make-billions/).

Bank Consortium To Issue Stablecoins

USDF Consortium is about to create a bank network to promote USDF stablecoin issued by its participants. It will create conditions where the emission and the turnover of the stablecoin will meet the requirements of regulators.


The consortium includes such banks as New York Community Bank, NBH Bank, FirstBank, Sterling National Bank, Synovus Bank, JAM Fintop, and Provenance Blockchain Foundation with support from Figure Technologies. The collaboration is connected to the high demand for blockchain services for fast money transactions among their clients.


All banks are insured by the FDIC, and it is an important criterion for all the cases of new participants.


The organisation representatives said that the USDF token will be tied to USD as 1:1. The token users can exchange it in any bank of the consortium.


The project will be launched based on the Provenance public blockchain. Apart from peer-to-peer and intra-bank transactions, clients can also use USDF in such operations as short-term loans to finance supply chains. According to Valerie Kramer, the CTP Executive Vice President of NBH Bank, using stablecoins will reduce the transaction expenses for small and medium businesses.

What about you? Do you think such stablecoins could become popular? Would you use them yourself?

The Anatomy of Stablecoins: Why is it easier to ride a bicycle

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Crisis of confidence in traditional fiat currencies - will cryptocurrencies soon displace the dollar?

Are stablecoins reliable?

Are they able to gain the trust of the society?

Read all about the anatomy of stablecoins in a in the new  article by RESERVEUM Analytical Group (https://reserveum.org/research/blockchain/the-anatomy-of-stablecoins/).

https://c.radikal.ru/c04/2201/0d/84a56c86a5d5.jpg

Why is the Gold Standard not a standard anymore?

What gives money its value?

Read a   new article from the Reserveum Analytical Group. (https://reserveum.org/research/blockchain/the-gold-standard-is-not-standard-anymore/)

Please, do not forget to share your opinion and do not hesitate to ask questions!

Why Bitcoin is Never Going to Replace Dollar

https://b.radikal.ru/b17/2201/17/1620af9c0de1.jpg

Which currency can replace dollar?

Does it really exist or there is nothing around like that?

Is it possible to create it?

Read the new  article by RESERVEUM Analytical Group (https://reserveum.org/research/blockchain/why-bitcoin-is-never-replace-dollar/).

Tulip Mania and Green Men


https://b.radikal.ru/b39/2202/cc/8e524780befc.jpg

How and why do financial bubbles form?

How to prevent a financial bubble?

Why won't blockchain let a bubble form?

Read the new  article by RESERVEUM Analytical Group (https://reserveum.org/research/economics/tulip-mania-and-green-men/).

Circle company that specialises in payment technologies released their brainchild - USD Coin (USDC) based on Flow blockchain.


Active since 2019, the Flow platform is popular among games, apps, and digital assets developers. Such popular apps as CryptoKitties, NBA Top Shot, and other dapps are based on it.
Jeremy Allaire, the Circle co-founder, explained this choice so: "Flow has emerged as the go-to destination for thriving communities of  developers, artists, creators and brands building their own  blockchain-based digital media and entertainment experiences."


Apart from Flow, USDC blockchain is also compatible with Ethereum, Algorand, Solana, Stellar, Tron, Hedera, and Avalanche.  This helps the company suit crypto community members with very different interests and business industries.


According to CoinGecko, by the beginning of February, there are around 50 billion USD Coins available. The number of stablecoin users reaches 1,3 million.


This stablecoin is believed to be one of the most promising coins; in January, its offer on the Ethereum platform outran the industry leader Tether.

Do you trust stablecoins? Are you using them?

FED – the Structure of the World’s Biggest Central Bank

https://d.radikal.ru/d18/2202/07/35f1bb3ce71c.jpg

How does the world's largest central bank work?

How flawless is this system?

Problems and tasks of FED in the new  article by RESERVEUM Analytical Group (https://reserveum.org/research/economics/fed-the-structure-of-the-worlds-biggest-central-bank/).

Digital Concentration Camp


https://b.radikal.ru/b29/2202/31/b48a99e01616.jpg

The crash of the world’s currencies is inevitable.

What will we have in the future?

What an average person can do?

Read the new  article by RESERVEUM Analytical Group (https://reserveum.org/research/economics/digital-concentration-camp/).

Anything that is backed up by something isn't ideal and non inflatable, the ideal currency or assets should hold its own value which comes from its own demand and supply. Fiat money has no value at all because it isn't actually backed by nothing other than government promise for the bill so keep your ideas better before talking about something.

Investment in land


https://d.radikal.ru/d09/2202/58/a5d70117806c.jpg


Why Do Large Investors Choose Land?

Is investment in land really a safe protection from inflation?  

When will the land tokenisation be completed and who benefits from it?


Read the new  article by RESERVEUM Analytical Group (https://reserveum.org/research/economics/investment-in-land/).

Hello there! Well, why would someone shut up) and hide his or her thoughts just because someone else does not agree? ;) It is not when everyone remains silent, but when everyone speaks up that the golden mean is found for the sake of the whole humankind and progress. So, it is always better to express yourself than not.

Last not least, there is a fundamental mistakable clause in your judgments: nothing in the worlds has value of its own, because all values are set and esteemed by people. So what you are saying is just 'substitute one subjective phenomenon with another, as subjective as all other one'. The only solution here is find the most secure path out of the variety of unsecure paths, to reduce the risk as much as possible. Here is where concept of Reserveum takes floor.

Have a closer look at the problem in our  article 'Investment in land'. (https://reserveum.org/research/economics/investment-in-land/)

Can Economies Survive Without Money?

https://i.postimg.cc/RFh0G4dy/can-economies1.jpg

Is an economy without money a utopia or a reality?

What is the alternative to money?

Is a No-money Economy our future?

Read the new  article by RESERVEUM Analytical Group (https://reserveum.org/research/economics/can-economies-survive-without-money/).

Neobanks are changing the modern banking system

https://i.postimg.cc/Y9NLYjdG/Neobanks1.jpg

They write to us!

The site Reserveum has published an article sent to us by an independent author as part of an  open call. (https://reserveum.org/open-call-to-the-reserveum-community/)

We are waiting for good articles and give valuable gifts for their publication on our website.

Read the new  article by RESERVEUM Analytical Group (https://reserveum.org/research/economics/neobanks-are-changing-the-modern-banking-system/).

Energy Currency – Money Powered by Electricity

https://i.postimg.cc/50K5HMTt/Electromoney1.jpg

Why can energy replace money?

Will energy currency manage to be the new money?

Electricity is already enough for creating an energy currency.

Read the new  article by RESERVEUM Analytical Group (https://reserveum.org/research/blockchain/energy-currency/).

Switzerland Switches to Crypto Taxing


The economic centre of the Swiss South, Lugano, started accepting Tethers as taxes. This experimental project may grow into full-scale cooperation with Tether Operations Limited when all the payments will be processed in USDT stablecoin.


The Lugano authorities partnered with Tether Operations Limited to create a Centre of Excellence for Blockchain Adoption. If this project turns out to be successful, the city may become the European centre of Blockchain technologies.


This partnership is an example of effective Blockchain use in real life. To do that, Tether and the city administration are planning to implement Lightning Network, the second level of BTC blockchain, to solve the problems of infrastructure scalability of the crypto city.


Tether Operations Limited is also planning to start a multi-million foundation to support Blockchain start-ups in the Swiss canton of Ticino and cooperate with the local universities and research institutions for raising Blockchain specialists.


For Lugano, this is not their first crypto project: for the past several years, the city has been very much involved in Blockchain technologies, including developing an inner-city token called LVGA Points. According to Michele Foletti, the city Mayor, the collaboration with Tether will become another step for the development of financial technologies in the region: "Lugano is investing in its future. In recent years, the city has already implemented blockchain-based  solutions including the MyLugano app and its LVGA Points payment token,  the Lugano digital franc, and the 3Achain blockchain infrastructure." said the Mayor.

How do wars affect the currency market

https://i.postimg.cc/x1pKgbHV/war1.jpg

Any military conflict is a tragedy for humanity. But also, all wars benefit someone.

Will the world learn to avoid wars, or do we need to completely change the current economic model? Is it real?

Write your comments and questions after reading a   new article from the RESERVEUM Analytical Group (https://reserveum.org/articles/how-do-wars-affect-the-currency-market/)!

Hyperinflation: 5 stories

https://i.postimg.cc/ZnYGvS5Z/infl1.jpg

What is hyperinflation? The most striking examples from history:

• Germany in 1920s
• Hungary 1945-1946
• Yugoslavia 1991-1994
• Zimbabwe 1992-2015
• Venezuela

Who is to blame and what to do?

Write your comments and questions after reading a   new article from the RESERVEUM Analytical Group (https://reserveum.org/research/economics/hyperinflation-5-stories/)!

Structural Inflation, or Why Do US Petrol Prices Get Higher

https://i.postimg.cc/hPd4JvD9/STRUCTURAL-INFLATION1.jpg

What is Structural Inflation?

Reasons Behind Structural Inflation

But is it possible to solve the problem of structural inflation with zero pain?

Read the   new article from the RESERVEUM Analytical Group (https://reserveum.org/research/economics/structural-inflation-or-why-do-us-petrol-prices-get-higher/)!

What do you mean by Revereum? Is this kind of you want to introduce the Project you are developing? you must include complete information at least you put a website link here.

If it's a global currency I'm sure it will support all assets, but if it's a human-produced global currency, of course there is no strong backup other than traditional banks.

I think we should not require that it has certain features but what we need is the trust of the users and how the money can actually be used by many people to gain trust.

What is Agio?

https://i.postimg.cc/76LcfW8N/agio1.jpg

Read the   new article from the RESERVEUM Analytical Group (https://reserveum.org/research/economics/what-is-agio/)!

It is cool to try to focus on some energy resource as a token so that we could use this globally. However, this is one of those things that can't be done this way. Energy is something tangible and crypto is not, which means that you are holding something tangible digitally and not the actual owner of it.

Let's assume I have a barrel of oil, and sold it to you for crypto, I still have the barrel, but you just have the ownership of it and can do whatever you want with it, and yet you do not "have" it. These type of ideas are great and see that you are working hard with the articles, but in order for this to get bigger, you need many big energy companies to come on board.

Hi!

Thanks a lot for sharing your thoughts and ideas with us! We do appreciate everything you have to share with us.

Let's take it to the next level! Why don't you send your ideas to our e-mail, info@reserveum.org, where we can polish them and, together, make them into a whole new article that Reserveum Group will gladly share on its site and official networks.
The article will be under your name, and there will be a link to your page (if you choose so, of course). Please don't hesitate to reach out to us!

Perfect Currency for Metaverse

https://i.postimg.cc/DyBmXGgJ/Metavselenn1.jpg

Metaverses were novelties yesterday. And today they are everywhere. How will we pay in them?

Read the   new article from the RESERVEUM Analytical Group (https://reserveum.org/research/blockchain/perfect-currency-for-metaverse/)!

Digital Dollar

https://i.postimg.cc/0jxNVLt9/DD1.jpg

What are the disadvantages of CBDC?

How CBDCs Will Affect the Money System.

Which Money is More Effective than CBDC

Write your comments and questions after reading a   new article from the RESERVEUM Analytical Group (https://reserveum.org/research/economics/digital-dollar/)!

Money Supply

https://i.postimg.cc/X7jK6fFN/MS1.jpg

What is Money Supply Used For?

Why is this money system is not effective?

How can we re-organise the financial system?


Read the   new article from the RESERVEUM Analytical Group (https://reserveum.org/articles/how-do-wars-affect-the-currency-market/)!

The British Treasury announced that it is going to legalise stablecoins and gradually implement them as a payment method.


Also, the government is planning on releasing its own NFTs and thus showing its attitude towards cryptocurrencies. This project will be launched by the Royal Mint.


NFTs are planned to be launched this summer. Chancellor Rishi Sunak commented that this decision would show the future-oriented attitude that Great Britain is going to follow while working with crypto.


The Ministry's representatives believe that turning to crypto would open an infrastructure sandbox for the financial market. It will give room for innovations and will raise the British Tax System's competitiveness.

Inflation Export and Marshall Plan

https://i.postimg.cc/XYQqJvcz/MP1.jpg

Who Came Up with an Idea to Export Inflation?

What did it lead to?

What do we have to learn from this story?

Read the   new article from the RESERVEUM Analytical Group (https://reserveum.org/research/economics/inflation-export-and-marshall-plan/)!

What is SWIFT and Why Everyone Praises It So Much

https://i.postimg.cc/BnqwWZhw/swift1.jpg

How does SWIFT work?

Does anything bother you yet?

Still, SWIFT is a nice idea.

Read the   new article from the RESERVEUM Analytical Group (https://reserveum.org/research/economics/what-is-swift-and-why-everyone-praises-it-so-much/)!

Stablecoin Regulation Draft

Pat Toomey, a Pennsylvania senator, filed a draft on regulating cryptocurrencies and invited the government to start implementing it fast. The senator believes that the fast-growing crypto market may spark irreversible changes in the economy if not handled right away.


At the same time, Toomey thinks that it is useless to require the stablecoin issuers to stand up to the banking standards, as recently proposed by the Biden administration.


The republican offers an obligatory quarterly audit of the issuers and a transparent report system of their reserves. Also, he believes that the stablecoins market needs a three-level licensing system that would include banking licenses, issuer companies licenses, and licenses on money transfers.

Currency Areas

https://i.postimg.cc/1tWSr8Wg/CA1.jpg

What are the most famous currency areas in the world today?

Read the   new article from the RESERVEUM Analytical Group (https://reserveum.org/research/economics/currency-areas/)!

Money in the Stone Age

https://i.postimg.cc/bJ0gJdZm/MSA1.jpg

What kind of money was there in the Stone Age?

Why couldn't people do without money even in the ancient times?

How did the shells affect the decline of the slave trade era?

Read the   new article from the RESERVEUM Analytical Group (https://reserveum.org/research/economics/currency-areas/)!

What is Carry Trade

https://i.postimg.cc/QM4dmmCC/CTrade1.jpg

What is Carry Trade?

Carry Trade in Action.

Non-Speculative Money/

Write your comments and questions after reading a   new article from the RESERVEUM Analytical Group (https://reserveum.org/research/economics/what-is-carry-trade/)!

What Happened to Terra LUNA

https://i.postimg.cc/FsFYmwdv/TL1.jpg

So, what went wrong with Terra?

What are the conclusions from this story?

How are we going to use this experience to develop effective money?

Write your comments and questions after reading a   new article from the RESERVEUM Analytical Group (https://reserveum.org/project/news/what-happened-to-terra-luna/)!

Bitcoin in Salvador – How BTC was Legalised


https://i.postimg.cc/y6cYyXRX/BIS1.jpg

Why was it a bad idea to make Bitcoin an official currency?

How can we use this experience?

All that and more – in our   new article! (https://reserveum.org/research/economics/bitcoin-in-salvador-how-btc-was-legalised/)

The ideal currency would be tokenized gold IMO. That or 0xMR.

Bitcoin is already considered digital gold :) There were some attempts to create tokenised gold, but they all failed.
And no wonder, since the digital economy requires its own "Gold Standard".
We believe that a coin that is not susceptible to inflation and market manipulations can become the new standard.
This is why we studied this issue in this article:  why Gold Standard is not a standard anymore. (https://reserveum.org/research/blockchain/the-gold-standard-is-not-standard-anymore/)

Stablecoins with Excess or Lacking Reserves

https://i.postimg.cc/G3j073dH/STB1.jpg

What is it Dollar Backup, Commodities Backup, Excess Crypto Backup and what is it used for?

Are there any No-Backup Stablecoins?

Write your comments and questions after reading a   new article from the RESERVEUM Analytical Group (https://reserveum.org/research/blockchain/stablecoins-with-excess-or-lacking-reserves/)!

In my experience, in order to lose less, you can stake in good percentages, this is a very equivalent way to stay with your own and even earn some money, I recently saw an article by AnalytEx, they have a landing aggregator in which they showed how much you can earn from one or another staking farm with $ 1000 and there were decent amounts, if you are interested, you can look for some kind of aggregators to stake your funds and get a profit, this is an option.

Hello.

Are you aware of this?

https://cointelegraph.com/news/scientists-claim-to-have-designed-a-fully-decentralized-stablecoin-pegged-to-electricity

The research paper was published here:
Can a Stablecoin Be Collateralized by a Fully Decentralized, Physical Asset? (http://"https://cryptoeconomicsystems.pubpub.org/pub/murialdo-physical-asset-stablecoin/release/2")

What are your thought on this?!

Sorry for the delay with some comment. It took some time to study the whole work. From the scientific and mathematical part E–stablecoin has a lot of potential but as it is a pure scientific work it has no way to come to life unless  in  the hand s of scientists.


The most disadvantaging point is “Note that the stablecoin concept proposed in this work has not yet been implemented.”  And then the author talks of coming years.  Nobody knows what will be in 5 years.


The second week point is the absence of practical mode: it is extremely difficult to list the new coin on the regulated exchange and as the E- stablecoin is not the ERC-20 it wont be possible to trade on Uniswap.

Economic Cycles’ Influence on the Currency Market

https://i.postimg.cc/cLr4MY8P/ECE.jpg

Spring, autumn, winter and summer. No, it's not about the seasons.

We will talk about economic cycles.

Read the   new article from the RESERVEUM Analytical Group (https://reserveum.org/research/economics/economic-cycles-influence-on-the-currency-market/)!

Price Control: Why Economy Cannot Survive in a Cage?

https://i.postimg.cc/d3nS3xpt/PC1.jpg

The history of price control from the Roman Empire to the French Revolution and the modern USA.

Write your comments and questions after reading a   new article from the RESERVEUM Analytical Group (https://reserveum.org/research/economics/price-control-why-economy-cannot-survive-in-a-cage/)!

What are Crypto Loans and How They Work

https://i.postimg.cc/vZJ3ZWYH/CL1-1.jpg

Types of Crypto Loans

Lending Arbitrage, Margin Trading, Leverage Trading or Profiting from Loan Liquidation which method of obtaining income from a loan is more profitable?

Crypto Loans Risks.

Write your comments and questions after reading a   new article from the RESERVEUM Analytical Group (https://reserveum.org/research/blockchain/what-are-crypto-loans-and-how-they-work/)!

Economy Globalisation – Currency Globalisation

https://i.postimg.cc/1X6WjMzd/EG1.jpg

Why Dollar Cannot Become That World Currency?

What a Global Currency Should Be Like

A perfect currency is not in the future, it is possible now

Read the   new article from the RESERVEUM Analytical Group (https://reserveum.org/research/economics/economy-globalisation-currency-globalisation/)!

Why is it Better to Pay Your Taxes in Crypto

https://i.postimg.cc/1tYtVv2C/WB1.jpg

What is the main point of the tax system?

But does it actually work?

The solution is easier than it seems

Write your comments and questions after reading a   new article from the RESERVEUM Analytical Group (https://reserveum.org/research/economics/why-is-it-better-to-pay-your-taxes-in-crypto/)!

It's good to have a topic about crypto articles that you wrote, but I would guess that it is also not really found cool by many people and only annoying. This is to help you, not an attack or anything. I just want to help you and say that even though it helps your SEO in a way, it also hurts it because people here find it annoying, meaning the ones who will click on your website would leave right away, so it will make your bounce rate higher, and that will hurt your SEO as well.

I agree with all you said about crypto payments on taxes, that's a good article, and I am 100% in support of what you said, just wanted to warn you ahead because I did this before and it hurts more than it helps.

Dear follower!
Thank you for your opinion! We really appreciate your feedback and the nice and polite way you put it.
We must admit, some of the articles have somewhat clickbait names but, and you state it yourself, it doesn't make the article worse. With this help, as you said, more people will click on the article that would otherwise never notice it. And though some may leave right away, some may become interested in the topic!

Our major goal is to make people question things they take as natural and unchangeable, and this is why we are trying to attract attention of people originally not interested in the topic. We hope to spread the ideas that would revolutionize the way our society thinks about money and economy, but spreading ideas is not always easy.
Thank you again for your warning! We will do our best to name our articles accurately.

Fiat Money – Endangered Species

https://i.postimg.cc/MGVjGXMx/FMES1-1.jpg

What is the main point of the tax system?

Where did the term "fiat" come from?

Write your comments and questions after reading a   new article from the RESERVEUM Analytical Group (https://reserveum.org/research/economics/fiat-money-endangered-species/)!

Trading Paradoxes

https://i.postimg.cc/5yYkqZsQ/TP1.jpg

Who can influence the economy?

Who has an impact on our money?

Is it only the government or are there other parties involved?

Read  the new Reserveum article (https://reserveum.org/research/economics/trading-paradoxes/) to find out!

Decentralised Business, Money, and Economy

https://i.postimg.cc/k4MNvqS0/DBME.jpg

Why does the economy need DAO?

What else can be decentralised?

What would it lead to?

Read  the new Reserveum article (https://reserveum.org/research/economics/decentralised-business-money-and-economy/) to find out!

Summer Digest

https://i.postimg.cc/RVmXyvxS/SD.jpg

Another quarter is over, and the developers of Reserveum MAX, a non-inflationary non-custodial currency, are happy to share their achievements and findings over this period!

Write your comments and questions after reading a   summer digest from the RESERVEUM Analytical Group (https://reserveum.org/project/news/summer-digest/)!

War on Inflation: Solution Found

https://i.postimg.cc/Y9NgLDtQ/WOI.jpg

Who regulates the money supply and how? And most importantly, why?

What is the role of the state in this?

The solution is simpler than it seems.

Write your comments and questions after reading a   new article from the RESERVEUM Analytical Group (https://reserveum.org/research/economics/war-on-inflation-solution-found/)!

You are just describing Bitcoin. Though Bitcoin isn't backed by another asset because it is itself the non-inflationary backing. Assets that are valuable and useful and have low inflation or non-inflationary in which the inflation can't at all or can't easily be changed are the assets that back weaker currencies and therefore don't need backing themselves, and this is Bitcoin.

Dear follower, thank you for your comment. We appreciate it, and it is really important when people can share their ideas.

Your viewpoint is very interesting, and we consider it to be true, though Bitcoin seems to be a rather speculative asset, contrary to Reserveum MAX coin.

By the way, there is an open call project in our Reserveum MAX group.

You can send your ideas there, as we are looking for smart people and there are prizes for the best ideas. Please, visit  Reserveum (https://reserveum.org/open-call-to-the-reserveum-community/) for more details.

Exclusive: Reserveum MAX, or the Money of the Future

https://i.postimg.cc/MH4SM3vB/MOF.jpg

The company rep gave away a secret from the protocol!

Write your comments and questions after reading a   new article from the RESERVEUM Analytical Group (https://reserveum.org/articles/exclusive-reserveum-max-or-the-money-of-the-future-the-company-rep-gave-away-a-secret-from-the-protocol/)!

New Social Engineering: How to make corporations work for people, not vice versa

https://i.postimg.cc/Wzj88D5d/NSE.jpg

What social engineering do we envision in the Reserveum ecosystem?

What is social engineering?

Write your comments and questions after reading a   new article from the RESERVEUM Analytical Group (https://reserveum.org/research/economics/new-social-engineering-how-to-make-corporations-work-for-people-not-vice-versa/)!

I mean you can describe any financial asset as a speculative asset. Speculation is just buying something in the hope that it's value increases, that's describes every single financial asset. Stocks are speculative assets, gold is a speculative asset, real estate is a speculative asset, USD is a speculative asset for those outside the US or for anyone who trades in the Forex markets. Saying something is a speculative asset is kind of a non-descriptor, it doesn't really tell you anything.

It's more important how you use the asset. Many people don't use Bitcoin as a specular asset because they use it as a long-term store value or savings. This usage will only increase in the future. As will its use as a transactional currency. People will still use Bitcoin as I speculative asset for investment and for trading. But still what you are describing in the thread is just Bitcoin, Except Bitcoin is better than what you're describing because Bitcoin doesn't need to be backed by some other (speculative) asset.

Making an asset that needs to be backed would be a weakness not a strength. So the ideal asset would definitely not need to be backed by something else because then you're just saying the ideal asset is a secondary asset, which would obviously make it not ideal. Bitcoin is a primary asset because it doesn't need to be backed and that is a huge strength.

We already have ideal non-inflated money. It's called Bitcoin. Since Bitcoin came out there have been countless attempts to make something better and no one has ever come close. Just as no one ever found a better hard physical asset to represent money than gold over the thousands of years gold was used, i doubt anyone will ever create a digital asset that could be better than Bitcoin, even in thousands of years in the future. This is of course assuming Bitcoin continues to get upgraded regularly with technological improvements.

I would say the only weakness of Bitcoin is that in order to maintain its perfect strength as money it needs to continue to be immutable and therefore can't have hard forks. So we are stuck with the original design and always keeping it backwards compatible. I'd say this is the only real weakness of Bitcoin but it is required in order to keep some of Bitcoin's key strengths. Like if at some point in the future someone was able to design a decentralized digital monetary system that was far more efficient than Bitcoin/blockchain, Bitcoin wouldn't be able to adapt and upgrade to this new more efficient system because that would require a total protocol change and mean Bitcoin is no longer immutable. Though I suspect even if that were to ever happen by then Bitcoin will be so engrained in society and the normal way people use Bitcoin (2nd layers like LN) will already be so efficient that it won't matter that the Bitcoin base layer is less efficient than whatever this new future tech is.