Decentralized Economy: What is it for?

[guoyu78]

I am searching on the topic of decentralized economy and I came up with this piece which is a good one for me. I am quoting it here below:

"What is it for?
The decentralized economy emerges as part of a critique of existing market-economy systems. Virtual currencies are making financial decentralization possible, which undoubtedly influences the economy. Some of its professionals say that this type of economy is used to reduce costs and increase efficiency, so that there are fewer surpluses and shortages of products so that people can be free to choose what to produce and consume, take advantage of the time and knowledge, etc.

Of course, it is not the same to speak of a decentralized economy than of cryptocurrencies, but we do dare to place them at a close level for their contribution to it. Spain, Switzerland or the United States are examples of such systems, and it must be said that virtual currencies have already reached them. As a result, we are witnessing the reaction of central banks, who still show a strong reluctance to their use and proliferation."
Source.

Are we heading to the creation of a decentralized economy (the one controlled by the people themselves) but still within and a part of the bigger centralized economy (the one controlled by the government)?

Decentralized economy?  It is just like you having a nation without law, I am not sure decentralization will ever work for economy, it is just best to stick with decentralized currency which will in turn help any economy than to talk of decentralizing economy. There cannot be decentralization without blockchain, and when it comes to blockchain, it requires the use of code to control things or make decentralization happen.

What code will be written to generally decentralize the economy or give people the full power to do whatever they like as regards economy without the government interference or control? Let’s not go this way at all.

[1714984809]

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[omonuyak]

Op you are right and that is why governments and financial institutions are fighting the existence of cryptocurrency and blockchain in general. I am in full support of blockchain technology because I see it as the only way to break the power of those powerful men and women that has been controlling the world economy and powers is being giving back to society through decentralized systems.

[slaman29]

Decentralized economy?  It is just like you having a nation without law, I am not sure decentralization will ever work for economy, it is just best to stick with decentralized currency which will in turn help any economy than to talk of decentralizing economy. There cannot be decentralization without blockchain, and when it comes to blockchain, it requires the use of code to control things or make decentralization happen.

What code will be written to generally decentralize the economy or give people the full power to do whatever they like as regards economy without the government interference or control? Let’s not go this way at all.

I think a lot of people think everything can be decentralized, and everything should be decentralized. It's not possible to blame them either, since even projects in crypto and their developers all think the same things. This forum for example is best centralized. I can't imagine what chaos would take place if we tell the mods and admins the forum wants to self regulate.

Now imagine if the same happened to some economies. I believe developed economies in some countries would do well but for corrupt ones the countries would just collapse.

[beerlover]

Honestly the main reason is not to have a federal bank that will ruin it by doing something silly that will help the rich and screw the poor.

So far in all worlds economy whenever something bad happens they save the rich people first with the idea that poor people all have money in the bank and if a bank collapses then the economy will as well but whenever they give the money the banks do not use it to help recover the people but help themselves with bonuses and so forth whereas people keep getting screwed and getting their houses and cars taken from them.

In 2008 if the newly printed 800 billion dollars were used to pay everyone's debt so that nobody would have debt and banks would get the money then we would still have banks recovering and also people at ease with no debt but they paid it to banks to recover whereas people also had to pay their debts to banks as well, most of which couldn't so banks got paid twice both by the government plus people who could pay or give their houses and what not. Decentralized economy stops all of this discrimination against the poor.

[Aptekary]

Guys, I think we should clearly distinguish between the guilt of the state, the banking system and the people.  Why are there debts that people have to pay to the bank?  Who forced to take a person in debt?  The fact is that in many countries, people are accustomed to not refuse anything in themselves and buy cars, houses at home, and live with bank loans in general.  Of course, you have to pay for everything and give the interest to which everyone agreed.  The banking system will never give their money.  In fact, the banking system has never had its money, because it is all the contributions of other users, but nevertheless the fact remains that no one forces a person to go to the bank and take a loan.

[hatshepsut93]

Decentralized economy sounds like a buzzword - market economy is already decentralized, as opposed to centralized economy known as planned economy, which was practiced in countries like Soviet Union and Maoist China. People like to add the word "decentralized" to anything these days, especially in crypto sphere, so it's important to always have clear definitions.

"What is it for?
The decentralized economy emerges as part of a critique of existing market-economy systems. Virtual currencies are making financial decentralization possible, which undoubtedly influences the economy.

Just because we have regulations and national banks, doesn't mean that the economy is centralized, governments don't make any demands to companies telling them what to produce and in what quantities.

[DreamStage]

You should start with what does decentralized mean:

Decentralisation is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group.[1] Concepts of decentralization have been applied to group dynamics and management science in private businesses and organizations, political science, law and public administration, economics, money and technology.

From: https://en.wikipedia.org/wiki/Decentralization

Then you apply this concept to the Economy.
You distribute an Economy management to many different entities. Which one with their own rules and controls.

Just as decentralized Stellar usage with banks where you will be able to send your stellar from bank to bank and trade it anywhere to fiat without the issue with fees from the banks and delays between transactions.
That's basically the same for decentralization on economy. There will not be such waitings for your money to be on your hand or ready for you to use it online.

[wahyu wida]

Decentralized economy?  It is just like you having a nation without law, I am not sure decentralization will ever work for economy, it is just best to stick with decentralized currency which will in turn help any economy than to talk of decentralizing economy. There cannot be decentralization without blockchain, and when it comes to blockchain, it requires the use of code to control things or make decentralization happen.

What code will be written to generally decentralize the economy or give people the full power to do whatever they like as regards economy without the government interference or control? Let’s not go this way at all.

I think a lot of people think everything can be decentralized, and everything should be decentralized. It's not possible to blame them either, since even projects in crypto and their developers all think the same things. This forum for example is best centralized. I can't imagine what chaos would take place if we tell the mods and admins the forum wants to self regulate.

Now imagine if the same happened to some economies. I believe developed economies in some countries would do well but for corrupt ones the countries would just collapse.

I think that everything will lead to a decentralized system. but it cannot be implemented in every sector of the economy for now. of course every country wants to be a developed country, and that must be done step by step

[Tylev]

The economy of any state can only be centralized. Decentralized economy and the state - the concepts are not compatible. Decentralization may exist at the local level, but at the state level the economy must be managed and regulated.

[barbara44]

Of course, it is not the same to speak of a decentralized economy than of cryptocurrencies, but we do dare to place them at a close level for their contribution to it. Spain, Switzerland or the United States are examples of such systems, and it must be said that virtual currencies have already reached them.

Lols,

Last time I checked Spain, Switzerland and the United States were not in the stone age.

Decentralized economy?
Go in the wilderness and start trading with bears and squirrels if you want a decentralized economy.

When somebody will start selling counterfeit expired milk with the same package and labels as your farm but you have nobody to turn to because there's no authority left you're going to regret the tyranny of the centralized system.

With all the blockchain hype all people only speak about decentralization, like is a miracle cure and pointing at it like being a natural solution.
Then start with your own body, I'm pretty sure the legs and arms are tired to only obey the brain! 

Yeah, decentralized economy is pretty much like communism, it seems to be amazing in theory but then reality hits you hard. We are not ready for a decentralized economy, humans are too greedy for that, maybe in the future when only AI is left.

It is not something we should even dream of, so long we are dealing with humans who are naturally lawless in nature, decentralizing the economy will create lots of chaos, there will be lots of scam, lots of fraud, lots of things happening that will go against the law. In fact there will no longer be authority that will function well. What are we even talking about, who will ever approve this, this is just a little fantasies which can never in the op’s wildest dream ever happen. We are still fighting hard to get decentralize currency approved and now we are shifting to decentralized economy? Absolutely impossible.

[webtricks]

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Yeah, decentralized economy is pretty much like communism, it seems to be amazing in theory but then reality hits you hard. We are not ready for a decentralized economy, humans are too greedy for that, maybe in the future when only AI is left.

Decentralized economy is nothing like communism, not even a single percent. Communism is a flawed concept. It promotes inefficiency as well as ineffectiveness. The sense of propriety lacks in communist society hence such economy can never grow, USSR is perfect example for this.
But decentralization is something much better than other forms of market. No one in today's date wanna controlled by other forces. As a bitcoin advocate, I can say that whether it's currency or any other commodity, if it is free from state's control, it is more accessible to public at large. However, decentralized economy do promotes inequality. It widens the gap between rich and poor. But as a common saying states: "Survival for the fittest". You need to grow on your own rather than waiting for support from government in the decentralized economy.

[LeGaulois]

You should start with what does decentralized mean:

Decentralisation is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group.[1] Concepts of decentralization have been applied to group dynamics and management science in private businesses and organizations, political science, law and public administration, economics, money and technology.

From: https://en.wikipedia.org/wiki/Decentralization

Then you apply this concept to the Economy.
You distribute an Economy management to many different entities. Which one with their own rules and controls.

Just as decentralized Stellar usage with banks where you will be able to send your stellar from bank to bank and trade it anywhere to fiat without the issue with fees from the banks and delays between transactions.
That's basically the same for decentralization on economy. There will not be such waitings for your money to be on your hand or ready for you to use it online.

It's not the same decentralization as you quoted. In fact, we could say we are already in a decentralized system but if each time you give the governance to the same centralized authority then there is no need.

administrative decentralization (deconcentration4);
functional decentralization (delegation);
political decentralization (devolution);
structural decentralization (privatization)

What we want is a decentralized system where the governance is given to us, the population. Where a consensus matters. And not really on the whole economy but rather the banking system.

[thehun]

governments don't make any demands to companies telling them what to produce and in what quantities.

Well, that's not entirely accurate. Many governments have production policies that establish quotas that they will subsidize. A good example is the European Union Common Agricultural Policy (CAP)

https://en.wikipedia.org/wiki/Common_Agricultural_Policy

Can you produce over this quota (if you're not a beneficiary of these subsidies)? Sure you can, but you will be in a clear disadvantage with everyone else as your effective production costs will be considerably higher.

[armarsterling7]

I am searching on the topic of decentralized economy and I came up with this piece which is a good one for me. I am quoting it here below:

"What is it for?
The decentralized economy emerges as part of a critique of existing market-economy systems. Virtual currencies are making financial decentralization possible, which undoubtedly influences the economy. Some of its professionals say that this type of economy is used to reduce costs and increase efficiency, so that there are fewer surpluses and shortages of products so that people can be free to choose what to produce and consume, take advantage of the time and knowledge, etc.

Of course, it is not the same to speak of a decentralized economy than of cryptocurrencies, but we do dare to place them at a close level for their contribution to it. Spain, Switzerland or the United States are examples of such systems, and it must be said that virtual currencies have already reached them. As a result, we are witnessing the reaction of central banks, who still show a strong reluctance to their use and proliferation."
Source.

Are we heading to the creation of a decentralized economy (the one controlled by the people themselves) but still within and a part of the bigger centralized economy (the one controlled by the government)?

I really like this statement. we actually create a decentralized economy but are still controlled by the government and the law. This is good because it is actually the opposite of the centralized market. therefore, solutions are becoming more and more effective in avoiding the harmful effects of inflation.
I really like decentralization, we are really free to make money and not be pressured.

[yslyv]

decentralized economy is something that supports its community providing alternative solutions to nowadays financial system. It is agains all traditional financial systems and also against nowadays banking systems.

[Botnake]

decentralized economy is something that supports its community providing alternative solutions to nowadays financial system. It is agains all traditional financial systems and also against nowadays banking systems.

I believe it's not against the banking system, it's just giving aid to the bank to give people a chance to do banking without the bank, or reach the people who have no access to bank. With the decentralized system, things are faster, cheaper, and more transparent, that's it's purpose why it's created as the traditional system is pretty limited.

[1Referee]

I really like decentralization, we are really free to make money and not be pressured.

So you like decentralization because you're 'free' to make money and not be pressured? I don't think anyone will pressure you when you try to make money without crypto being a thing. If you got the skillset that's in demand, you'll be doing well wherever you are or whatever the industry concerns.

People somehow think that crypto is an easy way to become rich, but that's not the case at all. Free money doesn't exist. You either already have in-demand skills that make you money, or you take big risks speculating on the prices. There are definitely more opportunities in an emerging industry, but that applies to any industry, whether you think it's centralized or decentralized.

If people really cared about decentralization they would be actively speaking out support for it, but they don't. Most people either don't care or don't know what it is.

[Indrawan77]

decentralized economy is something that supports its community providing alternative solutions to nowadays financial system. It is agains all traditional financial systems and also against nowadays banking systems.

I agree that nowadays financial system are full of flaw but decentralised economy is really dangerous system, imagine the uncontrolled inflation and the rich could easily manipulate the price, its not suitable to run a country with decentralised system, but its different with crypto it gives alternative payment solutions but it won't create a decentralised economy

[BitHodler]

What we want is a decentralized system where the governance is given to us, the population. Where a consensus matters. And not really on the whole economy but rather the banking system.

How do you see this work out? It's not that every person who switches to your ideal decentralized world is on the same thinking level as you are. Nothing changes the fact that we're still working with people.

Working with people means that there are different agendas to follow, and we to some degree have seen that happen in crypto already. Aside from being your own bank I don't think we will actually benefit much from decentralization.

The thing with decentralization is that it (for now at least) can't compete with centralized entities providing a service people consider useful to them. I haven't seen any development after Bitcoin yet that boosts my confidence in decentralization.

[blockchainwriters]

Decentralized economy is where people take decision and control the economy unlike big cooperation and governments control economy like the way how they have brought hyper inflation and growing debt hopefully in future we may see such development through Bitcoin and crypto currencies