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Sole24Ore) Money is a social convention with which communities facilitate economic exchanges, usually to the extent of the technology currently available. In this way, we have progressed from barters and swaps to currency with intrinsic value, be they anything from banknotes to wire transfers to gold coins.
We have experienced all of the positives and negatives of fiat money; we now have the freedom to decide together whether to accept the new technology or not.
The use of bitcoins makes the time a neutral factor: never in favor or against any party.
Time, related to fiat currencies as a result of inflation, is now an independent variable which reverses the most important financial concept that we have used for millennia.
If time is no longer the master, then the people are no longer directly subject to the phenomena caused by it, such as:
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Demurrage (the cost associated with owning or holding currency).
Currency also usually has the function of “store of value” which, by its inflationary nature, means that said currency keeps losing value over time. All this contributes incentives for spending and circulation. From the point of view of trade, this is a good thing. With an inflationary currency, holding the money is a sure loss.
With the traditional currencies, such as the euro or dollar, and because no one wants to lose value, you feel obliged to spend it or invest it, triggering the avalanche of compound interest and cross (not just monetary) between all actors involved.
It is the free decisions of economic agents to enter the time in the transactions to create artificial debts and credits to be paid by a certain date, but that is not inherently linked to the nature of Bitcoin. It remains a voluntary choice, not imposed by the monetary system’s infrastructure.
From a theoretical point of view, a peer can really be defined as a peer if there is no asymmetry of resources; i.e., if none of the parties is favored or disadvantaged by some factor, such as the time.
The Bitcoin system provides that the money supply is predetermined, not subject to discretionary decisions, therefore, betting on variable time does not make sense. (It’s not a deflationary currency, because the supply grows a lot at the beginning to power the system and then remains stable and predetermined for a long time).
For this reason even a millionth of a bitcoin has value, and above all it no longer has an expiration date as fiat currencies do. It’s important to note that bitcoin is not the only possible future; the open-source community continues to generate hundreds of other models with alternative incentive structures.
Are we going to lose the flexibility in regulating the money supply during a crisis with Bitcoin? Yes, and it will be a problem. Some might not view the issue of not being able to create speculative bubbles printing and pumping more money than necessary in the system as a problem, though. For the first time in centuries, the decision to print money has been released from the control of the Government.
It’s time to take a step forward and disengage from people who run central banks? If the number of people who benefit increase or have positive expectations about the future value of bitcoin, then adoption will increase, and show an appreciation of the currency against other currencies; otherwise, we will experience other things, as the ancient history of the world has shown.
It is the currency market, beautiful in its simplicity and unforgiving nature.
Making money timeless allows freedom from the top-down approach. All of this Bitcoin stuff excites the experimenters, confuses the public, and scares those who have interests to protect.
If we free ourselves from the authorities, particularly by people, organizations – and time – you can choose your favorite model for a new social convention.
Open your free digital wallet here to store your cryptocurrencies in a safe place.
6 thoughts on “With Bitcoin time is not more money”
supertylerPosted on 6:30 am - Aug 10, 2015
Sorry I don't agree with the core tenet of the post, that with digital currency time becomes irrelevant as a variable.
1. Inflation. Re: "It's not a deflationary currency, because the supply grows a lot at the beginning to power the system and then remains stable and predetermined for a long time". Not quite, it is deflationary long term – because whilst supply may be fixed, population growth is not.
2. Interest. Sure there is no central bank or treasury to set interest rates, and accounts no longer require 3rd party custody, but digital currencies can be borrowed, lent, and held in custodial accounts etc just as fiat is, all of which can require or generate interest.
MassimoPosted on 8:52 pm - Aug 29, 2015
Thanks Supertyler for your comments.
1- In this context, population growth means that they will demand more btc, for this reason btc will rise its value more than fiat money. In other words, btc will be deflationary even for other money.
2- With fiat money you have to ask interest rate, because you know that it lose value day-by-day.
But in btc paradigm you don't have any external financial reference. It is only about free choice between free people.
IMHO.
Александр ДужуржиPosted on 8:49 pm - Aug 10, 2015
Очень интересный и довольно подробный взгляд в будущее валютных операций. И, на мой взгляд (в отличие от предыдущего мнения), звучит вполне обоснованно.
MassimoPosted on 8:54 pm - Aug 29, 2015
thanks Александр Дужуржи
MassimoPosted on 10:33 am - Aug 31, 2015
Thanks Supertyler for your comments.
1- In this context, population growth means that they will demand more btc, for this reason btc will rise its value more than fiat money. In other words, btc will be deflationary even for other money.
2- With fiat money you have to ask interest rate, because you know that it lose value day-by-day.
But in btc paradigm you don't have any external financial reference. It is only about free choice between free people.
IMHO.
MassimoPosted on 10:33 am - Aug 31, 2015
thanks Александр Дужуржи