RE: Venezuela's New Cryptocurrency Is A Scam
This is a warning of things to come in the crypto world. I feel like we're lucky to get a real world example of what "governments" all over the world will want to do with blockchian technology. I pray that the world will take notice of the Maduro "governments" eventual abuse of this crypto assets built in ability to moniter & controle the peoples day to day transactions as a way to crack down on "less than desireable conduct". The state WILL rear it's ugly head, revealing it's self for what it truley is, a life/wealth sucking monster who pines for absolute rule over every aspect of the peoples lives. So long as we're there to document the abuse & shine light on it for the world to see, we'll have a good chance to get "citizens" of nations all across the globe to reject their life/wealth sucking monsters machinations for a similar tool of tyrany. Thank's @corbettreport, I think we'll get something good for the rest of the world out of this unfortunate development in Venezula...a bad example for the rest of us to avoid like the plauge.
Agreed @bibleanarchist, I feel we are lucky that this is happening now and moving forward nice and swiftly, this is yet another opportunity for people to see just how disgusting govts can and will behave. I hope this gets lots of media attention and captures the interest of average people so that they can learn a little more about the insidious nature of centralized monetary systems. This is a good thing for people in the broad sense. For Venezuelans, this is just adding more misery upon misery which is incredibly sad and one can't help but feel bad for the Venezuelan people. A suggestion....find Venezuelans here on Steemit creating good content, upvote the shit out of it...let's help flow some good money into a country filled with completely broken fiat. Isn't that the promise of crypto?
I like the idea of sending good money into a broken economy. Won't Greshams law take effect & the bad money will run the good money out of the economy? No easy answers here but all of us doing something will have an effect. Now to track down those Venezuelans here on steemit.com.
I don't know the answer for certain, but my thought is that Gresham's law is possibly outdated for this stage in our technologically-oriented monetary progression. Crypto is a new, nonphysical money paradigm that doesn't really give a damn about borders. It doesn't really need to have a pairing or any association with a fiat currency or any other form of money. It seems as though it should be able to exist as a parallel money system that wouldn't be polluted/diminished/destroyed by any other fiat system. Of course this is theoretical at this stage in the crypto game as few nations (perhaps only japan) recognize any crypto as legal tender. However, in the purest argument, law is essentially moot since real crypto (full decentralized, etc) is beyond the reach of law and can pretty easily operate in the underground economy. Now in the real economies of the world, who knows...we'll see how cryptos and nations coexist.
I've got a feeling that as things develop in the crypto space they may outgrow the effects of Gresham's economic law. I think we can kind of see the effects of this economic "law" (Gresham's) in the spending/hodl patterns of the market today. People don't want to spend their deflationary crypto when they've got trash cash (fiat) that folks will still take. That's one of the reason hodl is so popular. So I feel like we're seeing the bad money (fiat trash cash) chasing the good money (crypto) out of the market, in my opinion. But with all of the options out there in crypto...maybe as fiat goes the way of the Do-Do, we'll see less of this with competing cryptos. I doubt it but, you may be correct.
Hmm, I see what you are saying. As a counter though, my views of the spending/hodl phenomenon are a little different. I think the majority of people are not spending their crypto simply because the tech has not yet matured and quite simply it is not easy to spend for the vast majority of goods people buy (grocery stores, gas stations, online shopping, and on and on). I think of the hodl mentality mostly as a speculative phenomenon where people believe the tech is so nascent and hasn't come close to realizing its real market value as of yet. So, instead of taking the risk of actively trading the ups and the downs, people choose to hodl believing that, in the long run, price appreciation will happen due to a number of factors including new market entrants, tech advancing, institutional money entering market, etc. However, it plays out, certainly is fascinating to watch...such a dynamic situation!
Yes sir, indeed. Crypto must gain market velocity inorder to truley challenge the fiat fraud. I have faith in the people will get it in the nick of time & we'll see peace & prosparity. The likes of which this world has never seen.
"Greshams law" is not alone, got an logical extension for some time now .... So, bad money run the good money out of the shit economy to a premium, elite, economy by reverse of Greshams law, thiers law:
https://mirror.explodie.org/bitcoin-breaches-greshams-law.pdf and https://en.wikipedia.org/wiki/Gresham%27s_law#Reverse_of_Gresham's_Law_(Thiers'_Law)