You are right to have an issue with increase in capital stock as it is an inflation tax on the shareholders to the benefit of the company. This sentiment I share but I bring up stocks and expansion of stock only as a parallel to illustrate the similarities of securities with government fiat, and vice-versa. My point isn't necessarily that the upper echelon use stocks as a currency, its that companies have been engaging in and benefiting from money creation for a very long time. I noticed this a long time ago when I first learned how the federal reserve works, and that stocks are not much different than the debt notes issued by the government.
A stock, a bond and a fiat money have many similarities where the specific terms and conditions vary between the instruments, they serve very similar functions. Bitcoin is unique such that it also serves as an asset class but more akin to a physical possession than a fiduciary instrument.
Security
Bond
Fiat
Bitcoin
Creation
Issuance by company bylaws
Two-party debt contract
Debt contract contract
Proof of work
Profit for holder
Dividend
Interest
Taxes
None/Deflation
Redeemability
Upon company buyback
Upon maturity
Payable for all debts
Exchangeable for value
Exchange forum
Stock Market
Bond Market
Open Market
Open Market
Holder rights
One vote per share
Contract law, court enforced repayment or rights to collateral
Government decree
Universal veritability of possession
Value Measurement
Viability of company and potential profitability
Credit risk, face value, relative interest rate and maturity level
Merchantability for goods
The sum of all present value liquidity divided by 21M
Sources of Risk
Lack of company performance, loss of stock price, changes in profitability
Debtor fails to service debt, changes in interest rates, loss of collateral value
Run on banks, changes in tax revenue, loss of confidence of value
Loss
The problem with shitcoins, particularly ones with a centralized govenance and issuance model, is they are more like corporate paper than they are like a security. Separate from this topic, I propose that companies should move to a blockchain or NFT model of stock issuance (either with a shitcoin or somehow with bitcoin like liquid) to improve exchangability of the instruments and to reduce regulatory burden on both the company and the shareholder.
You are right to have an issue with increase in capital stock as it is an inflation tax on the shareholders to the benefit of the company. This sentiment I share but I bring up stocks and expansion of stock only as a parallel to illustrate the similarities of securities with government fiat, and vice-versa. My point isn't necessarily that the upper echelon use stocks as a currency, its that companies have been engaging in and benefiting from money creation for a very long time. I noticed this a long time ago when I first learned how the federal reserve works, and that stocks are not much different than the debt notes issued by the government.
A stock, a bond and a fiat money have many similarities where the specific terms and conditions vary between the instruments, they serve very similar functions. Bitcoin is unique such that it also serves as an asset class but more akin to a physical possession than a fiduciary instrument.
The problem with shitcoins, particularly ones with a centralized govenance and issuance model, is they are more like corporate paper than they are like a security. Separate from this topic, I propose that companies should move to a blockchain or NFT model of stock issuance (either with a shitcoin or somehow with bitcoin like liquid) to improve exchangability of the instruments and to reduce regulatory burden on both the company and the shareholder.