How are mining rewards different to seigneurage?
Same with POS validators.
RE: Bitcoin "Fixes Democracy"
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Bitcoin "Fixes Democracy"
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with exclusive rights to print/mint
there is an incentive to devalue, overprint, add some tin to the silver
bitcoin mining rewards are like physical gold mining
bitcoin mining does not create NEW money
it UNLOCKS a known quantity of a set number of coins
also
it is a provably fair system
if "the government" really wanted to "control" bitcoin
they'd spread negative news and bring high-profile court cases against bitcoiners
while setting up data centers mining bitcoin
and using thousands of bots to buy up small amounts off the market until they had a controlling stake
and even then, they wouldn't be able to print bitcoin out of thin air
like they currently do with "official" money
which is what they are doing - spreading FUD with one hand while buying with the other. Is still small-fry compared to existing global finance.
which is also why CBDCs won't be run like Bitcoin, but prob a closed POS - just like fakebook was gonna do and got slapped down. lol
The anointed POS validators will thus be earning their seigneurage fees ;-)
Also, Bitcoin is no longer a simple closed system. I said this when CME first launched BTC derivatives - the tail now wags the dog. This is also why S2F models will fail. Derivatives cannot create new coins, but they can create essentially wrapped-coins (in crypto-lingo) without the collateral - yeah, that's more SEC bullshit - thereby increasing the shadow market while actual coins are in cold storage. Those come out when miners need to cash-in profits. lol
it's the same as gold and silver
paper gold suppresses market price
because it is extremely difficult to "take delivery of physical"
but that problem doesn't exist with bitcoin
if the "wrapped" paper-bitcoin market collapses
that just means that people holding real-bitcoin will be sitting on a rocket-ship
exactly the same as if the paper-gold market collapses
Funny that the ECB uses the phrase "shadow finance" re crypto, yet derivatives are the same - as that shadow has become a black hole, but sshhhh... look the other way!
mmm... your example depends on the futures contract - some take delivery, some don't. That's why you get price spikes at expiry dates, as market makers have to either buy or sell to cover their delivery obligations.
options are 2nd-order derivatives. lmao. and those take delivery of the futures contracts. lmfao.
If anything has come out of crypto, it should be more awareness of how finance works - altho I suspect it is still a very small number of the public that cares enough. Herd-finance has always been the way.
"take delivery" now only means "cash equivalent"
yeah, there is no other crypto that compares to bitcoin
you can't lump them all together as "crypto"
CBDCs are pure evil