RE: Hive Subsidized Debt
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So I generally agree with most things you talk about in your posts, but this one I very much disagree with, and I would challenge you to think about it more because I've done a lot of learning on the subject to come to the opposite conclusion:
Stores-of-value do not make for good currencies. This is a known fact, and basically proven by Gresham's Law.
The reason Gresham's Law doesn't prove the point you seem to think it does is this part: "if there are two forms of commodity money in circulation which are accepted by law as having similar face value".
Gresham's Law ONLY works with government intervention in the free market. Every time in history where two commodity monies competed without govt. intervention, the harder (i.e. better) money won. This is why gold has won out as the best commodity money all over the world. It has beaten out every other commodity that different cultures used as money over time.
Any time people are forced to spend money that they might not otherwise spend due to inflation of the money supply, that is market manipulation, and it distorts the value of assets.
It is actually good that people will try to hoard store-of-value money like gold. Ultimately, with truly free markets, people will still need to spend their gold. They will need food, shelter, and they will want luxuries and entertainment. The difference is that those things will have to be priced in such a way that it's worth it for people to spend the gold on them rather than saving the gold. This is the proper, free market way to price assets. You have to decide whether it's better for you to have the food now, or more purchasing power in the long run, and that goes into the market pricing of all assets.
With inflationary, govt. controlled money, that whole system goes out of whack, and people just need to spend and/or invest their money as quickly as they can, so they buy and/or invest in things that they have no business buying or investing in under normal circumstances. That leads to asset mispricing and boom and bust cycles.
I know you state many times that the gold standard caused the great depression, but I think that the true facts show the opposite. Despite being on a so-called "gold standard", the money supply was heavily manipulated by banks which led to the crash. It was actually very similar to the 2008 crash. The gold standard prevented the government from being able to bail out the banks at the population's expense, but it was not the gold standard that caused the depression. Don't take my word for it though, this is what the facts show as far as I am able to tell.
Any economic depression is seeded from corruption in the economy.
This didn't always used to be the case.
It used to be Mother Nature's fault.
Like in Ancient Egypt if they didn't get a flood the economy would suffer if they weren't stockpiling grain from a better season. Now that technology has created abundance, all depressions are probably caused by artificial scarcity and the failures of modern capitalism and greed from the top-down.
In the case of the Great Depression: it was likely created from the growth created during the Roaring Twenties. When the economy is too good for too long people get lazy and assume it will always be good and they don't hedge for a downturn. Looking at crypto, we see that technology speeds up time and creates these cycles every 2-4 years. Crypto bear markets are created by the exact same corruption and greed, but they burn out the zombies much better than the legacy system.
The context in which I say these things matters more than the actual truth of the issue. The context of HBD is that we peg HBD to the most stable asset on the planet, and then we try to make it even more stable with interest rates. Pegging to gold would be a terrible idea unless it becomes more stable than USD, and even then a negative interest rate would then be required because gold can increase in value.
The gold-standard is an outdated practice and would only work as a inefficient but robust backup to crypto.
Luckily crypto is all about inefficiency and robust backups, which is why crypto will inevitably subsidize the gold/silver standard, as I have written about many times.
We're in complete agreement that pegging HBD to gold is a really bad idea and USD is a much better choice. That's mostly because HBD is debt though, and you want to have your debt in an inflationary asset not a deflationary one.
I was just saying that I don't believe the gold standard caused the great depression, and I believe that stores of value like gold and eventually bitcoin would make the best currencies in a free market system.
Yeah the whole "Gold Standard created the Great Depression" angle was a pretty flagrant hot take.
But I also believe that intelligent decentralized inflation is doing to become a killer dapp.
That isn't possible to achieve with Bitcoin or Gold.
To me Bitcoin and gold are all about security and robust backups and will take a backseat during the good times.