Cryptocurrency: Creating A Better Economic System

in LeoFinance2 months ago

Our present economic system is broken. This is no surprise to most. It is as obvious the nose on one's face. In other words, it cannot be missed.

The challenge is, what can be done to fix the system? This is something that is discussed by politicians, think tank experts, and academics. Yet, in the end, nothing happens.

Part of the debate centers around the best economic system. Some believe in socialism while others want capitalism. A few even go so far as to embrace communism.

The reality of the situation, when looking at history, is that capitalism, by far, has generated the most prosperity. This is something that is not even debatable.

Of course, economic systems do not operate in a vacuum. They are influenced by the different political systems which are interwoven. When coupled with democracy, or republic, we see problems arising.

People want their lives to keep improving. This is only natural. At the same time, society, as a complex system, has the drive to keep advancing. Thus, for an economy to have stability, it needs two things: growth and inclusion.

Here is where we run into problems. When an economy is not growing, people are automatically left out. This is going to happen even if the system was completely inclusive to start with. As growth stalls, those left out start to get antagonistic towards those who are included. Here is where they exercise their power of voting to take money away from other people. The obvious result is a polarized population.

In spite of what our political leaders over the last couple decades want to claim, growth has not existed to any great degree. Outside of China, the developed nations have basically seen pathetic results. Japan, the United States, and Western Europe are all pretty much stalled out. This created the situation where more people were excluded from the economic equation.

Then we couple this with the fact that most in emerging markets and third world countries are completely excluded. Their populations suffer worse than anyone since they have almost no resources to change things.

None of this happened overnight though. It was a progression over the last half century due to failures at many levels.


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Fortunately, it is all about to come to an end. Cryptocurrency is offering up a new model that has the opportunity to create a stable economic system on a global scale, probably for the first time history.

The key is that cryptocurrency can hit on both factors required to achieve this end.

To start, cryptocurrency is inclusive. Even in the early stages, we see the situation where the only barrier to entry is being able to get online. As long as one can do this, he or she can be involved. A blockchain like Hive offers a number of different applications whereby people can be rewarded in cryptocurrency. Thus, unlike the present system, one does not need any resources to start acquiring assets.

Secondly, because of the ability to create currency, we can apply rewards to any area of activity, innovation, or projects we desire. No longer are people relegated to having to beg those with money for the funding. As noted in other articles, we are all becoming Venture Capitalists. Through our holdings, we are able to support whatever projects interest us. As things evolve, the tokenization process is going to eventually provide more funding then VCs do now. It is only a matter of time.

This will help to put economic growth on an entirely new curve. The old model of 2% or 3% growth is going to be obliterated. Crypto funding is going to allow for millions of start up ideas to be pursued. Once this happens, the inclusion aspect of the economy will skyrocket.

We never know where the next multi-billion idea is going to come from. With the advancement of the interconnectedness of the global community, those who were previously on the fringes (or totally excluded) can now participate. It is something that is going to radically shift where growth comes from. Areas like Silicon Valley will see their power threatened as the process filters to all parts of the world.

The reason why capitalism is a powerful engine of progress is because it incentivized people to invest in assets that increase in value over time and generate more for society. Societies that are better able to put capital to work tend to be the global leaders.

However, there is a downside to this. Inequality is the result of this system. Those who have ownership of the assets are the ones who keep surging ahead. Most countries compound this problem by taxing labor. They are the ones who own the least yet get hit with the bulk of the tax burden.

Of course, some will say to tax capital since that is the way to make things "fair". Here again, that leads to polarization while also stifling the entire economic engine. While it sounds good in theory, the government's thirst for more money eventually gets to the point where it completely stops economic growth.

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The key always comes down to ownership. That is where the barometer of a stable economy is derived from. How widespread is the ownership of revenue producing assets? If confined to a small group of people, as we see now, that is a system that is ripe for upheaval. It also will not be growing very fast either.

Cryptocurrency spreads things out. Because of the low barrier to entry, anyone can get involved. This means that people have a starting point to work from. By no means is this an overnight solution yet, as we forge deeper into digitization, it does open the door for many opportunities. We will likely see more people in position to take advantage of them as compared to what exists presently.

Too many are operating under the idea that the problem is that there are "haves" and we should eliminate that. The answer is not to take from the "haves" and give to the "have nots". The concept if trying to create equality is absurd. This approach simply creates widespread "have nots" with the wealth in the hands of an even smaller group. Look at the Communist systems around the world.

Instead, we needs to aim for "haves" and "have more". There will always be some who are able to accumulate more. The reason for this is the generate greater value. They are smarter, work harder, and make better decisions than most other people. That was true throughout history.

Cryptocurrency gives people the opportunity to become "haves". It is an open system that is expanding greatly. There is no confinement to scarcity. While that exist in a token such as Bitcoin, there are thousands of others to get involved with. This is where decision-making enters the picture. Many of those will end up worthless, so we have to be careful. There are, however, a lot that will be highly successful.

Overall, this will provide a more stable economic system globally due to the inclusion of more people and rapid growth rates.

It sure beats what we are dealing with now.


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You're right about crypto being inclusive, government and economics of other nations on the other hand are not. It's obviously worse in third world countries because there's no check to the authority that these people wield, in essence, more reasons why we need new wealth that allows the minority to be part of.

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Third world countries suffer the worst because you have no means to counteract it. The resources arent there, government corruption is overt, and most are just trying to survive.

Thus, your backs are against the wall. That is why I love to see those from Nigeria, Venezuela, and other countries on here. I know we can make an immediate impact upon people's lives.

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It's sad that the Nigerian gov't is going against cryptocurrencies. I am from a third world country yet the government isn't against crypto, but there are exchanges here in the country that are being regulated by the government and Central Bank.

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It is an open system that is expanding greatly.

So greatly that currently even PooCoin worth more than $4 USD. :D

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Imagine getting rich by having (holding) a shit. :D
Now it is possible.
Someone took "take a shit" to a whole new level.

LOL

Let us use that as the foundation for the global economy. Collateralize the poo coin and build the economy based upon shit.

Of course, with a smart toilet, we could reward people with POO for the data from their shit.

Ponder that for a while. LOL

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Collateralize the poo coin and build the economy based upon shit.

That would be shitconomy. :D

Well they do that now except the shit coin is called the Federal Reserve Note. :)

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I've been laughing nonstop on this coin. 😂😂😂

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I used to own CIV II and III when I would play as a republic. It was awesome, you didn't have to deal with war weariness or any of that and you could still pull in a great deal of money to pay for all of the stuff that the government needed. You made some good points here about economic systems versus political systems. I think people have a hard time separating the two. Either that or the two are so closely knit together that one corrupts the other and we can never actually see what the full potential of each is.

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It sure beats what we are dealing with now.

Well its also what I think. I don't know how much more the current system can stay alive given what our political and economic leaders are doing. At least with crypto, it is going to be both a money maker and a money destroyer. We don't have the typical regulations so it will rely a ton of investor's ability to determine what will or won't succeed.

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Thus, for an economy to have stability, it needs two things: growth and inclusion.

I think, this is a crucial point. Social stability needs growing economy. Economic growth harms resources. Can we achieve a balance between growth and the environment? Can blockchain and cryptocurrencies contribute to this? I'm not quite sure.

What I have learned is that blockchain and cryptocurrencies can at least lead to more people benefiting from economic growth. That is already a good thing.

We are already moving in that direction. Food production continually increases, getting more out of an acre of land. This will accelerate as vertical and climate controlled farming enter.

Our world is going digital. Look at all the information that use to be on paper that no longer is. Within 10 years, producing paper for office purposes will be passe. There goes all the printers and copiers that are produced. Think of music being digital. No more CDs or the players associated with them.

As things become digitized, things change completely.

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Crypto has its downsides. Let's be real using bitcoin for day to day purchases isn't practical. Crypto is complex and intimating to people that are not technical.

BUT it is what we need. I've lived through 3 "this is the worst since the Great Depression" events. Suddenly the US has more money cause the Federal Reserve says it exists. It is going to catch up to us eventually.

The internet was complex and intimidating too. Look at how that worked out. Ease of use eventually gets built in since that is what the masses need.

Suddenly the US has more money cause the Federal Reserve says it exists. It is going to catch up to us eventually.

Not really. The Fed is printing to fend off a massive deflationary spiral that would come without it. Technology is crushing things across the board. This is putting the central bank in a tough position.

People talk about a 2% inflation rate. If they had to ensure a 25% deflation rate, they would realize how much they need the money printing.

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Another inciteful post. I would add that another reason that not everyone will belong to the 'have mores' is that not everyone is motivated towards large scale monetary accumulation as a natural part of their personal success model. Many are content simply to make a living that allows them to live their lifestyle of choice and put more of their energy into other endeavors. As you point out the ability for more people than ever to attain this is one of the great benefits of the cryptosphere.

That is very true.

Not everyone has the goal of being ultra wealthy and that is fine. There is no reason for that if it isnt what someone wants.

The problem is few can just live "comfortably". That is the sad part of our economic system now.

There is the haves and most others are just above broke.

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Can't argue with you on that.

For me, cryptocurrencies have created a new economic system
I believe that this system should prevail in the world
A system that controls by customers between supply and demand

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Yes the opportunity for inclusion is much higher with crypto. I just can't fathom how countries are being run as they are all so debt ridden and the only answer they have is to print money. In the past wars were the answer as they created jobs and a need for development yet today that wouldn't work as warfare has changed that much.

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Wars are still big money. Look at the money spent in the middle east.

The military industrial complex is still huge money.

But you are right, the system in total is broken. And most are aware of that.

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You could not be more correct, if we see the graphs of the labor participation rate, it has fallen freely since 2000, which lasts until the present, this rate cannot be confused with the unemployment rate, it yields more data than if it were cold analysis we can corroborate more clearly everything you have written. All this gives the impression that the economy died since 2008 and we had not buried the dead until now that the smell is already unbearable, the big central banks have only favored a tiny% of people, with the stupid hope that at some point that money will reach the hands of the least favored, cryptocurrencies is a voice of protest which is echoing louder and louder!

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There was no bounce back after 2008. The economic recovery was a mirage.

We need to really kickstart things and crypto can do it in my opinion. We have to start innovating in a big way. This will spread things out a lot more.

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It is the moment because if we look back 15 years ago, everyone was relatively satisfied with their lives, they did not pay attention or were not interested in a change, just to continue as they were, contrary to what we are living, the commoners are already tired of the monarchy plagued by autocrats!

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it is broken our economic system, socialism and capitalism are the same in my think,
always one man gobernment strong
and the rest are in the people base.
in my village a lot of people always born in poverty, grown in poverty and dead in the poverty, one and other times, and is normal to see, as an example to live or lifestile some times one only one as me
decided study and leave this circle, and people say, what can you do you do not need to study only work hard in the homesteading no more.
Unfortunately i am not doing nothing for try to involved my village to the criptosphere because always are unbelieve, and rarely believe in my and is posible that the gang members come for me for this reason i prefer only stay here alone, but when i acumulate a little, i do something for they as a give some scolarship, and repair the street that are very dangerous.
my village alsays produce milk, corn beans and cereal fruits and vegetables for the city near to this and the economics is in this way,
some one seller their workforce, in the city to get a form of life, but the economics are very slowly.
when i get richest i will try to help this people who live in extremely poverty near the comunity.
i remenmber a man, who asking me hey you, are you studing why, i say because i need to get a better lifestyle and he says me well when you finish your study please come here and found an enterprise and you will give me work ok.
i say yes when i will do this i do.
unfortunately my friend was dead around 5 years ago, and i could do not do my promise, is something that sad me, but well was not posible for mi to give work to some one.
for this reason i hope do it in the future.

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it's still a lot of work to become a "have" but you have many more advantages in the crypto world

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Great article, as always! If you would only use some H2 and focus on certain keywords, your style of writing compared with your knowledge would be of interest to Google as well and drive a lot more traffic here. If you are interested in that, let me know. I work in the SEO industry. But I have also seen some articles right here on Leo about that topic and they cover the most important aspects very well.

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