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RE: Could Cryptocurrency Help To Usher In A Post-Monetary World?

in LeoFinance8 months ago

One thing that cryptocurrencies have spurred is innovation in the traditional fiat systems. Crypto has demonstrated an appetite for fast, irreversible transactions. It also demonstrates that people are comfortable with a public ledger for day to day transactions.

I think that the biggest demonstration that cryptocurrencies have offered is that people are willing to participate in micro economies. We often hear about how small the BTC market is compared to the stock market, gold, and derivatives. But, we lose sight that BTC is lousy at scaling. At best, BTC is good for a microeconomy.

Hive is built for a much larger economy, in my opinion. I think it is better suited for a larger base of users given its efficiencies and the amount of Hive that's on the market rather than in wallets. We have plenty of room to grow for optimal use of the Hive tokenomics.

I don't think we necessarily need to have one currency rule them all. The world does well enough with so many national currencies. Part of the troubles we have is because dollars have such a large influence across economies. The Euro is a good example of how a large economy can create imbalances like we see between some EU members and others. While microeconomies have inefficiencies, these are largely mitigated by the speed of cryptocurrencies. It is much easier to take corrective action in a small economy than in a large one.

Back to the demonstrations, we see traditional systems responding by creating on ramps to crypto products. They are working on speeding up bank transactions with same day ACH and central bank digital currencies. Even Visa is working on virtual dollars. Ultimately, the genie is out of the bottle. Either the incumbent powers learn the new game or they get left behind. I don't think they will get left behind. I think they are waiting for things to become a certainty before they make the shift. I think the top funds stand to cash in by jumping in early before the mainstream does.

Once the world goes crypto, we can have these microeconomies like Hive where work is valued and rewarded. Voice is interesting because it offers a UBI demonstration which would be difficult to demonstrate in fiat land. Post monetary world is gaining higher and higher resolution as all these experiments take place and put academic economic theories to the test without wrecking entire nations.

Posted Using LeoFinance