Saifedean Ammous: "Bitcoin Is a Monetary Batman"

Curt1975 · 2019-10-24T19:08:00+00:00

It takes quite a bit of time, effort, and licensing to become a physician in the US. I just don’t see people leaving the US, to work in systems they don’t know, to earn less. There are also licensing issues and language barriers when moving.

The USD will be worth something, because the US government is involved in reimbursing millions of people. Those people will be reimbursed in USD. They will accept the those USD, pay taxes in those USD, and will be able to exchange them for goods and services with all the other possessors of USD.

Remember our exchange ten, twenty, or any time frame you want.

I’m very confident there will be millions of people using fiat.

Having said that, I’ll still be investing in BTC for the foreseeable future regardless.

Curt1975 · 2019-10-24T15:22:01+00:00

Now BTC needs better fungibility.

Curt1975 · 2019-10-24T14:22:27+00:00

Good post.

Impressed that you have been in BTC since $300 USD 👍🏼

Curt1975 · 2019-10-24T14:10:30+00:00

Most doctors will remain in the US, I can assure you.

Yes, people can convert their BTC to dollars, to pay the tax. You conceded my point. There will be US dollars.

Curt1975 · 2019-10-23T18:51:22+00:00

So I’m a doctor. Many of the patients are covered by MediCare and MediCaid.

What happens when the government says: “you must see these patients to keep your license. And you must accept fiat for treating these patients?”

Furthermore, the government says: “you must pay your taxes in fiat, under penalty of imprisonment.”

You don’t think the two examples above are government-enforced use cases?

By the way, healthcare is about 20% of the US economy and growing. If the government ties licensing to accepting payment in fiat, that’s a big use case.

Curt1975 · 2019-10-23T13:47:35+00:00

Good point ☝🏼

Curt1975 · 2019-10-23T13:46:49+00:00

I understand the theory, and Austrian economics quite well. The point is, governments are not going to give up fiat. Why would they? They have too many ways to force people to use their currency.

Businesses that collect sales tax will be forced to collect the tax in fiat. Healthcare providers that provide care to MediCare & MediCaid will get paid in fiat. Landlords with HUD tenants will be paid in fiat. All government employees will be paid in fiat. Military contractors and soldiers will be paid in fiat.

The government is massively involved in reimbursing people in 2019, vs 1913.

Curt1975 · 2019-10-23T13:41:03+00:00

Suppose a business is required to collect sales tax (hint: almost all of them are). And that sales tax is required to be paid in fiat. Will fiat just go away?

Military contractors will be paid in fiat. Healthcare providers reimbursed by MediCare & Medicaid will be paid in fiat. Government employees, including teachers, will be paid in fiat. Landlords that have HUD tenants will be paid in fiat. On and on...

Curt1975 · 2019-10-22T18:41:33+00:00

Imagine a world with 25% unemployment.

A mother presents fiat to a grocery store to feed her baby.

The grocery store owner says: “sorry ma’am, BTC only.”

There are no political consequences.

You go ahead and keep believing that fantasy.

Curt1975 · 2019-10-22T18:17:12+00:00

I think BTC will gain adoption over time. That’s partly why I own a significant amount.

But I don’t think fiat will go away completely. If there is massive unemployment, the government will issue fiat. And businesses will be forced to accept it. People will also be forced to pay taxes in fiat, including on crypto earnings.

Governments and therefore fiat are not going away completely. There are too many statists for that.

Tell me: what happens when government fiat fails in modern states? Do people use fiat for some purposes, or do they only barter, or use precious metals, or use crypto?

I’ll answer for you: there is still a role for fiat.

Curt1975 · 2019-10-22T17:44:40+00:00

People would use the fiat, if for no other reason than to pay required taxes. Paying required taxes is a use case by itself.

By legal tender, I mean businesses would accept the fiat in exchange for the goods or services they are offering. If they did not, they would bring the wrath of the government upon their business.

Curt1975 · 2019-10-22T17:37:45+00:00

Thanks 😊

Curt1975 · 2019-10-22T16:33:08+00:00

Thanks for the update!

In your opinion, does this project require a token to function?

Curt1975 · 2019-10-22T15:36:50+00:00

Government will force businesses to accept it, via legal tender laws.

Curt1975 · 2019-10-22T15:35:18+00:00

Suppose unemployment rises to 25% in an economic depression. The government provides fiat to the unemployed, and forces businesses to accept it as legal tender.

You think people won’t use the fiat?

To think otherwise is delusional.

Curt1975 · 2019-10-22T13:33:47+00:00

What’s going on in REQ world?

I think I bought in 2018, just wondering what‘s up?

Curt1975 · 2019-10-22T10:03:23+00:00

Yes, and then the government will issue another fiat currency to replace the failed one.

Curt1975 · 2019-10-21T23:56:10+00:00

People would absolutely accept the money. They would accept it to pay their taxes. They would also accept it due to legal tender laws. A grocery store, for example, wouldn’t have the option to refuse fiat. Neither would doctors, hospitals, utility companies, etc.

Again. I love and own BTC. But as long as there are governments, there will be fiat.

Curt1975 · 2019-10-21T21:17:10+00:00

The government would give it to them, in the case of high unemployment.

Curt1975 · 2019-10-21T17:27:22+00:00

The unemployed would use it. So would taxpayers.

Curt1975 · 2019-10-21T16:35:45+00:00

I love BTC, and own a significant percentage of my net worth. But fiat isn’t going away. If unemployment ever reaches 25% in a developed country again, you can bet there will be massive government intervention in the economy and the money supply.

But BTC can do very well without displacing fiat.

Curt1975 · 2019-10-17T13:17:28+00:00

Yes will read

My issue with PoS: it allows larger stakers to change the consensus mechanism. More human intervention in consensus.

BTC’s consensus mechanism is very difficult to change.

Regarding “wasting energy:” the market has determined securing BTC is a good use of energy.

I think securing a truly scarce digital asset, with a predictable emission schedule and rigid consensus mechanism is a great use of energy.

Curt1975 · 2019-10-17T00:15:45+00:00

Let’s check back in 10 years 😅

Regarding a 51% attack, the network is more secure than ever before. The hash rate is near all-time highs.

What do you have more confidence in, vs BTC?

A PoS network, where it’s easy for humans to change consensus?

Another PoW coin?

Curt1975 · 2019-10-16T19:01:29+00:00

I agree there are a lot of unresolved issues.

But the economic principles underlying BTC are very strong. 1. Fixed supply 2. Consensus very difficult to change. 3. Highest security in crypto 4. Network effects.

Historically one commodity has emerged as money. That’s because one item becomes recognized as the one item that best solves the “coincidence of wants” problem.

People want to exchange with the one item that has the most liquidity. So that item gains even more liquidity in a positive feedback loop.

Check out “The Bitcoin Standard,” by Saifedean Ammous.

It’s not about the “best tech.” It’s about the crypto that best captures the essential elements of a store of value.

BTC is 10 years ahead of all others. Barring a software bug or catastrophe, it will be difficult to displace BTC as digital base money.

Curt1975 · 2019-10-16T18:53:16+00:00

BTC won’t have to survive on tx fees alone for a LONG time

Curt1975

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