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1462 sats \ 8 replies \ @02674f045a 13 Jul 2023 freebie \ on: Opinion: Why BTC can't become the reserve currency bitcoin
Ever bought a computer or cell phone?
Why? Why not wait until your money is worth more later compared to the price of that cell phone?
Because you need it.
Before mortgages people bought the amount of house they could afford. Married couples (instead of spending tens of thousands of dollars on a wedding) would buy a house and build a basement that they live in until they can afford to build the rest of the house.
People are living beyond their means. Once I switched completely over to BTC as my money I ended my debt and bought my house in cash.
Cheap money.
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in this scenario, there would be massive income inequality. There are those that would sit on their BTC (100s of btc) while people who have 0 would have to work night and day for 10 sats
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Hmm, not income inequality, that's the current system. Just sitting on bitcoin doesn't grant you any more bitcoin. Sitting on the federal reserve board (shareholders) does grant one more dollars, however.
If there are people working night and day and their offered goods and services still can't convince a single person to part with their sats, that's a separate problem and probably means those goods or services were never really needed in the first place. To be sure, I think modern society is full of businesses marketing such things, and doing away with some of it would do us all some good. There's no point in doing extra work, creating disposable crap that nobody really needs if they were to actually stop and think about it.
To be fair, there is quite a heavy distribution inequality in bitcoin, but there's every indication that it's evening out over time. That's the market just doing its thing.
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I totally understand what you are trying to say, but it seems that in this world, only things that are needed will survive. I understand that the invisible hand has its place, but humans are not robots, they want to be able to spend their money right then and there, and BTC discourages that.
It may take a generational shift in culture to shake this out of people, but most people can't even afford an emergency fund let alone make good financial decisions about frivolous goods. I agree in theory, but in practice it is much harder to see it happening.
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I think people with bad spending habits would learn wuickly. Also banks will be much more reticent to give out loans since they can just get the return from holding btc. Meaning to actually qualify for a house you need to actually have your shit together which would have let us avoid the 2008 crisis and subsequent printing
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It took about one year as a bitcoiner for this mentality to be shaken out of me, and I went from no emergency fund to a modest one in the process. It may take less time than you think.
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it also levels the playing field over time, making it much easier for those furthest from the money printer to have an easier start
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