Not sure I’m quite with you on wishing for a DSC (digital sovereign currency) unless you favour a perennially Orwellian society where the government knows all. Admittedly we are inexorably being dragged into that. DSC would be the last nail in the coffin of individual freedom.
Clearly, we would lose privacy and in previous posts I have shown that particularly in Europe, privacy concerns are a major objection against the introduction of these digital currencies. But to me, this is pretty much the same loss of privacy as the one you experience when you sign up for Facebook or open a Google account. Anyone who is on any social media platform is already giving up far more private information to unregulated businesses than they would give up to a government.
It’s a personal choice. I don’t do social media as it’s foundation for narcissism, political polarisation, erosion of society and mental health issues, especially in our young. But it’s a choice.
The only choice once a DSC comes in is to move to another country and hope they don’t adopt one. I’m resigned to it happening, I just loath the idea.
Ps I forgot to say that JK you say you prefer it to private companies (no argument) but you live in a liberal western democracy. Would your view change if you didn’t? The USA itself could have its own democracy seriously challenged in the coming decade such is the polarisation there. Irrespective of that outcome once the DSC cat is out of the bag, there’s no going back. A despotic government could truly use a DSC for evil ends and as a tool of population control in a way Google and fb can’t.
Good point. I haven't considered that. And yes, a digital currency in an autocratic regime is a scary thought. It's kind of like the social credit system in China.
China have actually launched a DSC in some cities. Bet it won’t take long until digital yuan will be the only form of economic exchange domestically excl barter. Cryto already banned as a competitor
I think BTC will never become money or a tool for payments. But it could replace gold at least partially. I agree that systems like the gold standard do not work, but.. aren‘t the crises that required an increase in money supply a product of central banks reckless monetary policy? Would they have happen if there was another, a sound monetary system?
No, not really. Take the Great Depression as an example. We were on the gold standard back then. Then the stock market plummeted 80% and in a panic investors rushed to the central bank to cash in their gold. In order to defend the gold standard and the sound money system, central banks had to hike interest rates dramatically to keep investors from demanding gold in specie. That of course ended the run on sound money but the price was that the economy tanked much more because all loans became super expensive and investment activity came to a standstill. Having a sound money system made the Great Depression possible. Without it, we would not have had such a bad depression in the 1930s and - if I may speculate - Hitler would not have come to power in Germany in 1933.
Agree, but since Nixon‘s famous speech in 1977 and the new era of fiat money all big bubbles happened mainly because of too much money hunting bad investments. I know that there is no perfect system, but the current one will cause troube again and again. Until it will be replaced.
I love it :)
Not sure I’m quite with you on wishing for a DSC (digital sovereign currency) unless you favour a perennially Orwellian society where the government knows all. Admittedly we are inexorably being dragged into that. DSC would be the last nail in the coffin of individual freedom.
Clearly, we would lose privacy and in previous posts I have shown that particularly in Europe, privacy concerns are a major objection against the introduction of these digital currencies. But to me, this is pretty much the same loss of privacy as the one you experience when you sign up for Facebook or open a Google account. Anyone who is on any social media platform is already giving up far more private information to unregulated businesses than they would give up to a government.
It’s a personal choice. I don’t do social media as it’s foundation for narcissism, political polarisation, erosion of society and mental health issues, especially in our young. But it’s a choice.
The only choice once a DSC comes in is to move to another country and hope they don’t adopt one. I’m resigned to it happening, I just loath the idea.
Luv the work JK. Keep it up.
Ps I forgot to say that JK you say you prefer it to private companies (no argument) but you live in a liberal western democracy. Would your view change if you didn’t? The USA itself could have its own democracy seriously challenged in the coming decade such is the polarisation there. Irrespective of that outcome once the DSC cat is out of the bag, there’s no going back. A despotic government could truly use a DSC for evil ends and as a tool of population control in a way Google and fb can’t.
Good point. I haven't considered that. And yes, a digital currency in an autocratic regime is a scary thought. It's kind of like the social credit system in China.
China have actually launched a DSC in some cities. Bet it won’t take long until digital yuan will be the only form of economic exchange domestically excl barter. Cryto already banned as a competitor
Good!!!
I think BTC will never become money or a tool for payments. But it could replace gold at least partially. I agree that systems like the gold standard do not work, but.. aren‘t the crises that required an increase in money supply a product of central banks reckless monetary policy? Would they have happen if there was another, a sound monetary system?
No, not really. Take the Great Depression as an example. We were on the gold standard back then. Then the stock market plummeted 80% and in a panic investors rushed to the central bank to cash in their gold. In order to defend the gold standard and the sound money system, central banks had to hike interest rates dramatically to keep investors from demanding gold in specie. That of course ended the run on sound money but the price was that the economy tanked much more because all loans became super expensive and investment activity came to a standstill. Having a sound money system made the Great Depression possible. Without it, we would not have had such a bad depression in the 1930s and - if I may speculate - Hitler would not have come to power in Germany in 1933.
Agree, but since Nixon‘s famous speech in 1977 and the new era of fiat money all big bubbles happened mainly because of too much money hunting bad investments. I know that there is no perfect system, but the current one will cause troube again and again. Until it will be replaced.