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Bitcoin has already demonstrated its worth as a SoV- because people like you and me chose to use it to store our liquid capital, because it offered us a more attractive option than the state imposed fiat money and its debt leveraged risk based stocks, bonds and property derivatives.. But we must still mostly use fiat for everyday MoE, which leaves the fiat operators still with effective monopoly over everyday MoE. They can accept Bitcoin as a speculative commodity, taxed and tracked and traced, and increasingly custodied by them for a fee, but not as a MoE- because if Bitcoin is used as a MoE directly undermines their monopoly monetary power and their ability to control all commerce and trade and individuals involved in any commerce and to as a consequence extract rent from all participants by way of debasement and debt. For me, for Bitcoin to succeed fully it must remove the layer of wealth extraction currently taken by the fiat operators via debasement and the ability to sanction individuals or entities they wish to marginalise. As a reserve asset it does partially erode their monopoly but as a MoE it provides a fully competitive monetary market where fiat can only survive if its parasitic wealth extraction from participants is minimized. Either way Bitcoin has succeeded already to an incredible degree- empowering many individuals and projects that would have not otherwise have been possible.
0 sats \ 0 replies \ @anon 2h
But we must still mostly use fiat for everyday MoE, which leaves the fiat operators still with effective monopoly over everyday MoE.
The fiat system in its current format is unsustainable.
They can accept Bitcoin as a speculative commodity, taxed and tracked and traced, and increasingly custodied by them for a fee
Taxed and traced maybe under certain circumstances. But that doesn't mean it has to be custodied by 'them'. And as long as they don't have the keys... they can't censor the spending or movement of Bitcoin.
because if Bitcoin is used as a MoE directly undermines their monopoly monetary power and their ability to control all commerce and trade
You know what also undermines their monopoly monetary power? Borrowing ~ 7% of GDP per year and having to pay the interest. The math doesn't work when you can't raise taxes or cut spending (because the voters would vote you out).
As a reserve asset it does partially erode their monopoly
Dude eroding their monopoly means their bonds trend towards junk status and Bitcoin is AAA. They cannot sell debt the interest owed is too high, with too little demand when the bond is Junk.
where fiat can only survive if its parasitic wealth extraction from participants is minimized.
Well tell that to people in Zimbabwe. Or Mexico. Or Lebanon. Or the United States... people don't "have" to use fiat.
Either way Bitcoin has succeeded already to an incredible degree
I think Bitcoin is just getting started.
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