Decentralized Economy: What is it for?

[bitgolden]

I think it is giving us the option to be more transparent with the money we spend and transact even though it is considered more anonymous than fiat currency. Even in fiat currency which is considered to be traceable it is hard to trace cash actions or the actions of some shady bank that doesn't share their information with the public but only with government authorities which they already bribed anyway.

Or the worst case is Swiss bank accounts or cayman bank accounts or even now Caribbean bank accounts which is basically taking all your money out and not paying taxes. With blockchain and decentralized economy we would be able to see who makes how much and will be able to tax them properly on that and they will be forced to pay their taxes which would help the poor not pay so many taxes instead of wealthy.

[Theb]

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)?

The question really is will the government of any country allow this to happen in the first place? You are really asking the government to give in a big power to their citizens by giving them the control of their economy and people who would take advantage of this are the top 1%, people in the middle class and below would be eaten alive by this system and we would wish that the government is the one who really needs to be in control.

[Naida_BR]

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 would add to all that, the fact that a decentralized economy doesn't mean that only money is exchanged in this system.
You can also exchange other assets, or own things that have value in our economy. This promotes also a decentralized economic system.

[deisik]

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)?

These people are delusional

We are not heading anywhere. Well, definitely not in the direction of full-fledged decentralized economies based on cryptocurrency. Bitcoin as well as other cryptocurrencies remains a purely speculative asset, so these ideas or visions are no more than castles in the sky. At best, Bitcoin will become a tool for hedging against fiat currencies (and government lawlessness, while we are at it), a device for storing value of sorts. But most likely, it will just go on as a vehicle for speculation (though personally, I'm quite fine with that)

[Leyss]

Decentralization of the economy at the state level can not exist. The state economy can only be centralized and controlled. Public organizations and individual representatives of the people may be involved in managing the economy. The final decision on the various issues discussed may in some cases be taken collectively, but in most cases it is made solely by an authorized official.
Decentralized economy, in my opinion, is equivalent to anarchy in the economy.

[LeGaulois]

@deisik
Can a society exist without a leader? I doubt that it would be just an anarchic society. The same can be said with the economy. Decentralized economies do exist already but to see something based on Bitcoin is near impossible and delusional, true that. But as an alternative currency, there is nothing delusional and Bitcoin is relevant

[Finestream]

Decentralization of the economy at the state level can not exist. The state economy can only be centralized and controlled. Public organizations and individual representatives of the people may be involved in managing the economy. The final decision on the various issues discussed may in some cases be taken collectively, but in most cases it is made solely by an authorized official.
Decentralized economy, in my opinion, is equivalent to anarchy in the economy.

Decentralized economy is solely controlled by the people themselves so if this become possible with other big countries,how much more with those small countries?Trough virtual currencies,decentralized economy can be attained.It might take a hard time but if people will cooperate,decentralized economy will surely be realized in the future.

[reality18]

Decentralized economy works in favor of the people as it liberates them from the power of centralized systems where an individual or body owns control over the affairs of the whole nation. This is why cryptocurrency users are free from the interruptions of middle men in their financial transactions because crypto is decentralized.

[Janation]

It is a possibility, but we all know there is a body that will not allow this.

The government always want anything in control and that is the same with the economy. For me though, it is true that we might be leading there since there are a lot of platforms and countries that accept Bitcoin as a payment. But the age of the Internet, I think will go first before that where the internet is always what we need and what we importantly need to live our lives to the fullest.

[farwellbit]

Bitcoin is not fighting for decentralized economy but to be a decentralized currency that people can use for fast and cheap transactions, that's the difference in what you have said. So stop saying that Bitcoin is created for the target of achieving decentralized economy, unless maybe I'm wrong. But I'm very sure that you if you study Bitcoin the purpose is just to be a decentralized currency that people can use to send and receive money, not regarding where they are in the world and also for a cheap transaction  fees. Although I don't know if Bitcoin is still what it's meant to be cause whenever the price goes high the, the fees for  transaction goes up as well. Bitcoin was meant to keep users anonymous but it seems all these things are going to change soon, cause I'm hearing from people around that people might be needing kyc to make use of crypto.

[DigitalCyberius]

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)?

What do you mean exactly by a decentralized economy controlled by the people themselves? Do you mean a business and entrepreneur centered economy? Or something else? It seems like business/entrepreneurship is the best way to get what you're looking for.

Have a good day,
The Cyberius team.

[Finestream]

It is a possibility, but we all know there is a body that will not allow this.

The government always want anything in control and that is the same with the economy. For me though, it is true that we might be leading there since there are a lot of platforms and countries that accept Bitcoin as a payment. But the age of the Internet, I think will go first before that where the internet is always what we need and what we importantly need to live our lives to the fullest.

If other countries have managed to create a decentralized economy through the use of virtual currencies,then it's very possible too that it would also happen to some other countries.But i think this would really take time to make it happen because surely the government itself won't allow to have a decentralized economy because they won't have the sole control of their people.

[Dontme]

I think that there should be a clear distinction made between a decentralised economy, and a decentralised currency supply.

That's right.Decentralized economy means a totally free market without any government control and cartells or monopoly(which almost impossible to happen in the real world).
Decentralized currency supply means a supply of currency that is free from government/human control and serves the needs of the markets(that's my definition,it's might not be accurate).

I know right, a decentralized economy would create destruction. The money is always centered in the government, also, government will never approve on a decentralized economy.

[Dontme]

I think that there should be a clear distinction made between a decentralised economy, and a decentralised currency supply.

That's right.Decentralized economy means a totally free market without any government control and cartells or monopoly(which almost impossible to happen in the real world).
Decentralized currency supply means a supply of currency that is free from government/human control and serves the needs of the markets(that's my definition,it's might not be accurate).

I know right, a decentralized economy would create disaster. The money is always centered in the government, also, government will never approve on a decentralized economy.

[deisik]

@deisik
Can a society exist without a leader? I doubt that it would be just an anarchic society. The same can be said with the economy. Decentralized economies do exist already but to see something based on Bitcoin is near impossible and delusional, true that. But as an alternative currency, there is nothing delusional and Bitcoin is relevant

Sorry for the late reply (didn't follow this thread closely)

I think you should first clarify what you mean by a leader. A society can in fact exist (and prosper) without an authoritarian ruler where the functions and tasks of a leader are taken and carried out by the government machine (courts, legislative bodies, etc). In that case, it will be far from an anarchic society obviously but it still won't be a decentralized society in the sense you mean it. To put it differently, instead of a sole ruler there'll be an overwhelming ruling machine. It is called bureaucracy, but not necessarily with a negative connotation to it (read, it may actually be a good thing if the rules are reasonable and followed through)

Other than that, Bitcoin is relevant as a potential store of value having a few properties of a real currency, e.g. the capacity for being used as a means of payment, which gold (another store of value) mostly lacks

I know right, a decentralized economy would create destruction. The money is always centered in the government, also, government will never approve on a decentralized economy.

A decentralized economy based on crypto would quickly implode but a decentralized economy is generally considered a good thing in itself (at least as long as it stays decentralized). It is called laissez faire

[MadeinCoin]

I think that there should be a clear distinction made between a decentralised economy, and a decentralised currency supply.

That's right.Decentralized economy means a totally free market without any government control and cartells or monopoly(which almost impossible to happen in the real world).
Decentralized currency supply means a supply of currency that is free from government/human control and serves the needs of the markets(that's my definition,it's might not be accurate).

Yet i do still think the market still can be manipulate by some parties and rich people will still be in control. I do think it will be hard to make a decentralized economy. Economy still not equal for each country and super power country control all the economy and i do think there is no way to stop them from do it, especially china which is really great country in export.

True, making a decentralized economy impossible. Moreover, each country has different ideologies. Like North Korea, where this country is a communist country which is all governed by the government. And a decentralized economic system cannot be wrapped up in a centralized government system, because both are conflicting.

[justdimin]

I think we are all sick and tired of governments actually having a say in our money supply and that seems to be the biggest issue. Banks and governments are controlling the financial world however they want and sometimes some idiot president of a country does something silly or says something bad about another president and whole nations go into economical warfare. There are not that many wars going on with actual guns, countries now fight with their economy.

Hence, decentralized economy makes sure no rich person cheats, no government official even the president can affect it badly nor any single person can cause any harm to millions of people. We all will be equals in economy, doesn't matter if we are rich or poor, doesn't matter if we are president of a country or unemployed teenager, we all get the same rules apply to us.

[stompix]

I think we are all sick and tired of governments actually having a say in our money supply and that seems to be the biggest issue. Banks and governments are controlling the financial world however they want and sometimes some idiot president of a country does something silly or says something bad about another president and whole nations go into economical warfare. There are not that many wars going on with actual guns, countries now fight with their economy.

I'm pretty sure that the economy would fare far better in the hand of the bounty hunters that spam bitcointalk and don't have a clue how basic things work. Let's take a vote, who would you want in charge of the money supply, Jerome Powell or the moron who applied three times for a "slut" in a signature campaign?

Remember, decentralized economy, pure democracy, his vote will be the same as your and as Harvard graduate.

Hence, decentralized economy makes sure no rich person cheats, no government official even the president can affect it badly nor any single person can cause any harm to millions of people. We all will be equals in economy, doesn't matter if we are rich or poor, doesn't matter if we are president of a country or unemployed teenager, we all get the same rules apply to us.

Yeah, it doesn't matter....how?
How would you, with no money have a saying in a totally decentralized economy?
All the poor people will simply have even less saying now, the rich will have all the power.

For god's sake, look at what is happening with bitcoin during pump and dumps.
With 100$ you don't budge the price one cent but a whale can crash the market by 20%.

This is real decentralization, not your pink fluffy dreams.

[klaaas]

however they want and sometimes some idiot president of a country does something silly or says something bad about another president and whole nations go into economical warfare.

Or corruption where 99.9% of the countries wealth gos to the president and friends.
Bitcoin can be a solution for those who doubt there local currency or lost faith in there government with there cash printing habits. The more stable bitcoin gets the more appealing it will become.

How would you, with no money have a saying in a totally decentralized economy?

Running a node doesnt have to be funded.

[bitgolden]

It is a possibility, but we all know there is a body that will not allow this.

The government always want anything in control and that is the same with the economy. For me though, it is true that we might be leading there since there are a lot of platforms and countries that accept Bitcoin as a payment. But the age of the Internet, I think will go first before that where the internet is always what we need and what we importantly need to live our lives to the fullest.

If other countries have managed to create a decentralized economy through the use of virtual currencies,then it's very possible too that it would also happen to some other countries.But i think this would really take time to make it happen because surely the government itself won't allow to have a decentralized economy because they won't have the sole control of their people.

A decentralized economy will end up damaging the economy completely if allowed, and this is where the war will start from if anything of such tries creeping into the system. I understand that government have their own issue too, and sometimes, it could be very annoying on so many restriction they place on citizens and so many taxes that is being imposed, but it is better we continue to run such system than have one that would completely kill the economy such as the decentralized economy.

it will make the citizen of the nation to be lawless and lack control and once there is no higher authority to curtail the situation through the control they should have, them such economy is gone, and once we take a good economy out of the equation, the country becomes a dead one.