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Cutting edge? The only special thing about Bitcoin is the blockchain which only matters when there is a shortage of trust. Bitcoin may force government to be more responsible because it can be used to circumvent capital controls or price controls. Any advantage other than trust that a public blockchain has can be replicated through a private blockchain. It's just software after all.

Considering the monetary philosophy behind Bitcoin it is basically motivated by gold which is something we abandoned as a currency because we know it doesn't work and doesn't make sense. It's akin to having shares in the global economy. If you own 1% of the economy in 1930 then you will also own 1% of the economy in 2021. You're just a deadweight leeching off the economy. Since your share is fixed but the economy growing you are getting richer at the expense of other people. More and more people start investing "into money" and then quit working. You get a bust or recession or depression when people consider money a superior investment over actual work. Thus the economies' size is limited by the quantity of shares. If you issue new shares people will immediately start working for them even if it is at the cost of diluting them. You can clearly see it happening with the block reward. Bitcoin miners work like crazy, consuming an absurd amount of energy. The same applies to gold.



Considering that trust in government is at an all time low public blockchains provide some much needed openness.

The reason we went off the gold standard is because the US government printed off more money than they had gold and then got caught.

Instead of trying to make up for their crime the government decided to ban ownership of gold.

Cryptocurrency doesn't have a deflationary restriction. If bitcoin is too similar to gold, people will just use some other coin.


The inflationary coin was tried more than once. I remember one that wasn't content with infinitely expanding the monetary base - it would delete balances at random, watching people try to defend the idea was hilarious.


Good comparison.

What if Bitcoin continues as it is, which is a way to preserve a part of wealth in a semi-liquid way. Once it hits an equilibrium point, it doesn't go any higher due to the limit in it's liquidity.




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