A question about crypto-currencies from a 12 year old

[Razick]

I've heard of a crypto-currency which provides a basic income for everyone but why does it have to be basic? Why can't it provide a good income for everyone? Also, will prices rise if everyone was earning a good amount of money? I am only 12 and have no knowledge of the economy but I am interested in learning about crypto-currencies.

Hi, the problem with that idea is that, although it sounds nice, money isn't actually wealth... it only represents wealth. If a currency was made to give enough money to everyone for a good lifestyle, it would be devalued over time. That's actually why prices in dollars go up over time: As the government gradually prints more money, each dollar becomes worth less. If they were to just print dollars for everyone *all* dollars would lose value and eventually become worthless. This happened to Germany during World War I. This picture picture shows kids playing with German money after the government printed so much that it because worthless. Although it would be nice to provide an income for all, to do so you either have to tax or print money (this goes for cryptocurrencies as well as fiat), both strategies do some serious harm to the economy.

I am *not* saying that we shouldn't take care of the poor. I believe we should, but we have to be very careful to avoid unintended consequences.

How would you go about achieving this then?

There's really no way to do it without taxing unless people take personal responsibility for helping the poor, but it's important to tax as little as possible because if we tax too much (as most nations do) it creates even more poverty. One way that might work is to give welfare to anyone who falls on hard times, but require them to work in order to continue receiving benefits unless they are disabled or otherwise can't work. It sounds harsh, but if we just give anyone who doesn't feel like working a good income, then too many people won't work and *everyone* will get poorer. Eventually, who will pay?

Right now one problem we have is that (in the US) many states pay more in welfare than entry level jobs. Why work when you can get money from the government?

So we're talking about socialism here?

Seems like it. That, or communism, but they're not the same thing. Keep that in mind.

Welfare should have a mandatory number of volunteer answers at the least, it would be better if it was enough for about 1/2 month's worth of benefits, the other had to be worked for. That would kind of encourage people to get jobs, or at least help the overall quality of things.

I'm pretty far from socialism, I don't support a welfare state, but I don't support people dying on the street either. We need a basic safety net--- but it has to discourage perverse incentives and avoid sucking the economy dry. You could call that a socialist concept, but on the modern scale I am somewhat libertarian.

[MasterOfDisguise]

I've heard of a crypto-currency which provides a basic income for everyone

That's not what cryptocurrency is. Whatever you heard of, it's not "cryptocurrency," it's just some thing.

http://en.wikipedia.org/wiki/Bitcoin

http://rt.com/op-edge/iceland-auroracoin-financial-crisis-825/

This is very similar to the idea I suggested but on a much more basic level.

[rugrats]

I am intrigued as to why you are pretending to be a 12-year-old.
I'm afraid your vocabulary and grasp of sociopolitics betrays you.
More than that, the naive-like pretense you displayed in the opening post contrasts sharply with the subsequent ones.
I'm curious to see where this thread will eventually led to.

[darkota]

I am intrigued as to why you are pretending to be a 12-year-old.
I'm afraid your vocabulary and grasp of sociopolitics betrays you.
More than that, the naive-like pretense you displayed in the opening post contrasts sharply with the subsequent ones.
I'm curious to see where this thread will eventually led to.

I as well, OP is probably doing this just for "fun" to see what kind of reactions he'd get from pretending to be a 12 year old with a large array of vocabulary and understanding. He's obviously not 12.

[digitalindustry]

I've heard of a crypto-currency which provides a basic income for everyone but why does it have to be basic? Why can't it provide a good income for everyone? Also, will prices rise if everyone was earning a good amount of money? I am only 12 and have no knowledge of the economy but I am interested in learning about crypto-currencies.

that's where you went wrong

Crypto currency does not provide anything  except :

a free means of exchange of your energy - i.e your work or production .

now why would the world be a "better" place?

because the "means of exchange" i.e "money" is issued as debt now and thus your "energy" (productive capacity) is being "drained off", taken away (stolen)

how that mostly happens is though :

1. Tax (obvious) and
2. Inflation (that is when you get paid but your money (Debt money) does not buy you very many "things"

Summary

If you really are 12 - if you grow up and this system prevails (i.e Crypto currency disappears)

You will be less than peasant poor - you will be  "Piss poor" depending on your status now, but you will certainly enjoy a "Soviet style" life.

oh P.S

do as many fucking drugs as you like , but don't forget - Debt money = you a poor fucker/working slave.

[hyperdimension]

This is no basic income thing. If you are fiat poor you will stay bitcoin poor.

[Yakamoto]

I am intrigued as to why you are pretending to be a 12-year-old.
I'm afraid your vocabulary and grasp of sociopolitics betrays you.
More than that, the naive-like pretense you displayed in the opening post contrasts sharply with the subsequent ones.
I'm curious to see where this thread will eventually led to.

You know, he may not be pretending...

Some of my friend's kids speak literally like this, and they're young teenagers. Young people aren't necessarily morons.

However, I do believe there is a real possibility he may be older than 12, and by quite a few years. He does seem to know far too much...

[atc1]

The goals that you have proposed are long term goals such as basic income and all. Bitcoin now needs to gain more popularity and usage among the masses first. And once it becomes a proper currency,it may suffer from the same pitfalls that currency and money distribution is now facing,maybe even in larger proportions.

[PereguineBerty]

I as well, OP is probably doing this just for "fun" to see what kind of reactions he'd get from pretending to be a 12 year old with a large array of vocabulary and understanding. He's obviously not 12.

My thoughts exactly.

A real 12 year old would be more concerned with playing conkers, Minecraft and sniffing girls' bike seats.

[MasterOfDisguise]

I as well, OP is probably doing this just for "fun" to see what kind of reactions he'd get from pretending to be a 12 year old with a large array of vocabulary and understanding. He's obviously not 12.

My thoughts exactly.

A real 12 year old would be more concerned with playing conkers, Minecraft and sniffing girls' bike seats.

See, that's where you are wrong. Is it not possible for a 12 year old to be mature for their age? And what makes you guys assume that I am a boy. For all you know I might be a girl.

[EvilDave]

I as well, OP is probably doing this just for "fun" to see what kind of reactions he'd get from pretending to be a 12 year old with a large array of vocabulary and understanding. He's obviously not 12.

My thoughts exactly.

A real 12 year old would be more concerned with playing conkers, Minecraft and sniffing girls' bike seats.

Old farts tend to forget that kids are just as smart as us ancient geezers, it's just life experience that they lack.

My advice is:
Never trust anyone over 16.
Buy BTC, you probably won't regret it.
Subscribe to every single freebie you can find.
There is no such thing as a free lunch.
Do drugs. They are fun.
Don't do all the drugs, though.
If you must smoke, wait until you're 18.
Sunscreen is good.

[MasterOfDisguise]

I as well, OP is probably doing this just for "fun" to see what kind of reactions he'd get from pretending to be a 12 year old with a large array of vocabulary and understanding. He's obviously not 12.

My thoughts exactly.

A real 12 year old would be more concerned with playing conkers, Minecraft and sniffing girls' bike seats.

You really have a great insight into what the life of an average 12 year old is like.

[iampingu]

I as well, OP is probably doing this just for "fun" to see what kind of reactions he'd get from pretending to be a 12 year old with a large array of vocabulary and understanding. He's obviously not 12.

My thoughts exactly.

A real 12 year old would be more concerned with playing conkers, Minecraft and sniffing girls' bike seats.

You really have a great insight into what the life of an average 12 year old is like.

How can you be average if you're into bitcoins and socioeconomics

[Razick]

I as well, OP is probably doing this just for "fun" to see what kind of reactions he'd get from pretending to be a 12 year old with a large array of vocabulary and understanding. He's obviously not 12.

My thoughts exactly.

A real 12 year old would be more concerned with playing conkers, Minecraft and sniffing girls' bike seats.

See, that's where you are wrong. Is it not possible for a 12 year old to be mature for their age? And what makes you guys assume that I am a boy. For all you know I might be a girl.

I was interested in politics and technology at a young age. I believe you.

[zhinkk]

I've heard of a crypto-currency which provides a basic income for everyone but why does it have to be basic? Why can't it provide a good income for everyone? Also, will prices rise if everyone was earning a good amount of money? I am only 12 and have no knowledge of the economy but I am interested in learning about crypto-currencies.

I think you just have the wrong fundemental idea of crypto currencies. Don't think of it as a vehicle to EARN money, think of it AS money. It is money. You can buy stuff with it. You can pay me .4 BTC and I will send you a PS3 (shameless advertising ). We just exchanged. The reason not everyone makes good money is because of the "market". There are always losers and winners. Losers are the ones who were wrong. The winners were right. Simple as that. People gamble at "becoming" the winners but buying a certain coin (bitcoin, for example) at a lower price. Then waiting, and selling at a higher price. They won! However, if they bought, and the price goes DOWN, they lost.

[dreamhouse]

nice question from a 12 years old