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October 23, 2017, 08:20:09 AM
Last edit: November 10, 2017, 08:19:00 AM by dado7 |
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Hm, I stumbled upon this thread and I see that it has not been posted to for some time while I think it is very interesting.
But I would like to point something out from an economic perspective since I have noticed that a lot of people are against the primary emission.
Fixed amount of an coin (ever to be in existence) is good, if you want to use it as a "value holder". By that I mean that it can be something in which you can invest and hold for a very long time hoping to save or hoping to have the rise in value.
However, if you are hoping for it to become a currency, which I think this community is thriving to accomplish, then the primary emission MUST exist.
Why?
Because if you have something of a fixed amount then this amount can be allocated only once and then only re-allocated along the time.
What happens is that the minority of the people accumulate the assets over the time (this will happen in any system and it is very hard to prevent it), while the rest is being used for trading.
However, what is lacking in this system is the ability of this currency to cover the "added value" - anything new that is imported into or designed inside the system - new production, new know-how, well shiny diamond - even new people that are being born. That is why the primary emission must exist and (feel free to call me a Keynesian) - regulated. Otherwise you will have a system like nowdays where the private bankers are basically controlling everything by controlling the supply chain of that, basically insignificant, without any real value, thing invented only to ease the trading process - money.
There are too problems with the primary emission however:
1. Inflation;
2. Regulation.
Inflation can be controled in some way, but it is not easy to do it. Mathematically, the inflation has to be a little higher then the overal progress - for example - if you have 4% of the rise of added value, the inflation should be around 5-6%. The very problem with the inflation is that the wages usually don't follow the increase in prices....
Since the inflation, obviously, has to be regulated, the second problem is the regulation itself. It is not easy to be done in the correct way since every system is different and unique, and there is a question of that utopian thing called the "fair government". Just look what happened with the socialism.....
The blockchain technology could however do something to regulate this in the more responsible and decentralised manner. We have to discuss how and I like the idea of the OP that the systems could be combined to create something better.
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