Oddbean new post about login | logout Fiat being backed by bitcoin is the same thing from a monetary stand point, it’s only functionally different for the user. What it would mean is immediate and impossible to control plummeting of any and all printed currencies when they are printed or new debt is issued. If bitcoin is the highest liquidity market and is the dominate pricing tool, then “hiding” inflation becomes impossible. ALL fiscal decisions result in immediate and sharp declines or increases in fiat purchasing power. It would be the end of widespread systemic theft from the money printer.
It is a second best option. I personally don't want banks to exist, I want to separate the state from money and I want to prevent CBDCs.
Ideally, yes.
Banks will always exist, same as retailers, insurance companies, broadcasting companies, etc. banks serve a useful purpose, the problem isn’t the bank, it’s the structure of power they obtain in a fiat system, that ends up horrifically abused. In other words, when “bank services” can be provided by a local trusted friend or entrepreneur, for just 200-300 customers, with very high quality, customer centered values, and trust minimized multisig/CTV/BitVM design, then literally none of the problems of banks can or will manifest at scale ever again. In other words, the problem has nothing to do with banks or financial services. They are necessary and desirable. The problem is the control structure they exist within, and all the incentives and consequences of that.
Sounds like bitcoiners are the new local bankers lol
BTW: I can't zap you
No one can yet. I want to wait until I set it up in a very specific way, which has taken quite a bit longer than I thought it would 😅
I demand zapisfaction ser
*zaps https://image.nostr.build/dc00c49ffdbd9f10c2d44fe045bef1ef38f3b25723ade956b1474c63e8ba15ee.gif
WEDGE: Did you get the Zap?! Dimi: Son, we live in a world that has digital walls, and those walls need to be protected by encryption and decentralization. Who's gonna do it? You? You, Wedge? I have a greater responsibility than you could possibly fathom. You celebrate financial freedom, and you curse the central banks. You have that luxury. You have the luxury of not knowing what I know -- that financial censorship, while tragic, probably saves lives; and my existence, while grotesque and incomprehensible to you, secures freedom. You don't want the truth because deep down in places you don't talk about at parties, you want me on that blockchain, you need me on that blockchain. We use words like honor, code, loyalty... we use these words as the backbone to a life spent defending something. You use them as a punchline. I have neither the time nor the inclination to explain myself to a man who rises and sleeps under the blanket of the very financial freedom that I provide, and then questions the manner in which I provide it. I would rather you just said thank you and went on your way. Otherwise, I suggest you pick up a node and stand a post. Either way, I don't give a damn what you think you are entitled to! Wedge : Did you order the Zap?! Dimi: um later
Well, in the USA, the US govt gave the banks cartel status by giving the Federal Reserve system the effective ability to print up money and loan it out. In return, the Federal Reserve system makes sure that the interest rates are low enough to always finance government spending. It was a marriage made in hell. The thing is, that system will work as long as the system is mostly free market, but when it becomes over saturated with government spending and debt, the market is no longer able to function efficiently, and it starts to eat itself.
The real issue is more fundamental, the loaned money is indistinguishable from the “real” money. There is no way to root out leverage because it’s systemic to the money itself. If a bank creates a loan and then deposits from thin air, it’s fundamentally impossible to price it separately according to its counter party risk. Bitcoin fixes this
