You are viewing a single comment's thread from:

RE: Crypto Financial Innovation Just Getting Started

in LeoFinance6 months ago

From where I am sitting, it seems that our society suffers from living inside a system that states — in not so many words — that "Growth is God."

That is, every aspect of our system — and particularly our financial system — is dependent on this notion that if we have 1X resources (money, lifestyle, status, widgets, whatever) this year, we "must" have 1.05X of them next year or we have somehow "failed." But that's a paradigm that — beyond simply the base growth of a population, IF there is any — is ultimately doomed to failure... because the only thing you can prop it up with is "air," aka inflation.

Much of this "air" gets snuck by people at a consumer level; your soda bottle looks the same, but it goes from 1/2 liter to 16oz, which the price went up 10 cents.

The problem is actually made worse by the group of people we loosely call investors, because they typically expect to make a rate of return that's greater than inflation, and so the small change in that soda bottle gets funneled from millions of "average Joe's" to a small number of "investors," and there's our growing income/wealth inequity.

Economists and so-called "experts" avoid looking at this, because they avoid talking about 20-year and 50-year projections... they like to talk about next year because the negative-effect numbers look modest.

The promise of crypto... at least from my limited perspective (and I am NO financial expert!) is that suddenly the "end user" and the "investor" can become one and the same. That's just one.

How to untrain the world and the "establishment" from the idea that growth/inflation is "God" will be a challenge...

=^..^=

Posted Using LeoFinance Beta

Sort:  

I have a different take on things. Growth is not necessarily only tied to inflation and can outpace population increases.

Technology is a prime example of what an provide growth rates greater than that, in many instances requiring less than was before. The digitization/computation boom is the epitome of this.

We will end up seeing this going forward in a field such as energy. What happens when we have unlimited or near unlimited energy?

With that, money is really just a tool for collaboration. This is why people who are constantly looking for inflation, especially in the last few decades, are always wrong. Technology obliterates their entire premise.

Posted Using LeoFinance Beta