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21 sats \ 4 replies \ @hugomofn 14 Jul 2023 \ on: Opinion: Why BTC can't become the reserve currency bitcoin
How do you think things used to work when the world was on a gold standard ?
Very good point. Bitcoin is different but this is a good point. This post is an example of how short memories can be these days. I mean, we haven't even lived under this debt fueled system that long. Truly fascinating to me to see people struggling to see an alternative future. I mean at one point in history the most power person on the planet was the Pope... things change. Things will change.
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We haven't lived under the debt system because there wasn't a need for it. As the global economy has shifted from industrial to technological, naturally this has consequences such as not enough production of homes. Also, debt has fueled many people's ability to grow their wealth by leveraging it. Acting like debt is bad is craziness.
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Debt has existed before and during the gold standard. People did not stop taking out loans or being entrepreneurial on a gold standard.
The total amount of debt and leverage will likely decrease on a Bitcoin standard, but debt vehicles will still exist.
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So we need more debt because of technology? Actually as I understand it technology is deflationary itself. As technology reduces the amount of real labor required to work. An extreme example is the computer. I would argue the supply of homes is greatly affected by zoning laws and other regulations as well as the money being inflationary.
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