Now I'm not an economist, I studied accounting back in college, but I learned a little on the basics of economics to have a fundamental understanding of money. We know that money is just a measure of value. Value in the context of human society is what's both need and desired and to what degree it's needed or desired.
Simply put demand and supply.
This morning I was reading about the Bitcoin economy and whether that kind of economy would be possible in our world. With the help of Chatgpt I didn't have to go online to read different articles, it was all summed up for me and I got the gist of it. One part it said that made me a little worried to think about the subject of value, is the negative side of such an economy. It said wealth would be distributed immediately, and it's the early adopters that would suddenly become wealthy in such an economy.
So I thought, well that means there seems to be no hope for those who didn't join in early to buy in cheap, or those who didn't have enough "fiat" to buy a lot. Then another thought hit me:
Would the early adopters keep hodling in such an economy?
Nope, they would need to start using their Satoshi to leave life. So eventually if they don't make more, they end up with nothing in the long run. If not them, then probably someone down their bloodline would finish it up.
No different from the way to make more fiat. You get it in exchange for the value you produce and offer to another. I need water to survive, someone produces it and gives it to me, I pay the person fiat and they have more money. It doesn't matter if it's Satoshi, hives, ethereum or another type of monetary system humans will come up with, you will still give it to me in exchange for necessities and luxury.
This means what you and I should focus more on is not missing a pump, but producing value for value. We call Bitcoin a store of value. How then will someone offer you his value? Yep, you guessed right: if you offer them back value. It's a value-for-value economy. It's the same reason bitcoin miners are rewarded for each block. Without their systems we couldn't even transact in the new monetary system of a Bitcoin economy. That's the value they offer.
Instead of "FOMOing" all over the place, I want you to know that regardless of what new systems humanity adopts, the fundamental principles remains the same.
What you want for what I want.
If you can produce any type of value that is demanded by man, you should be fine. You will never go poor or broke that way. I'm adopting this new mindset. Yeah of course I will buy the dips and make some money during pumps, but the real wealth will come from building my "craft" and getting good at offering a better value to humanity.
Oh here's another thing to drive my point, when you read about Bitcoin, the advantage that is being advertised here is that it's a store of wealth, not a wealth creator. Yeah of course if you jumped in early and bought 10 Bitcoins when it was below a dollar, you're definitely a millionaire by now. If you don't know how to make more money, and preserve what the pump gave you, then you'd just spend it all and be back to where you started.
You make the wealth through the value you sell, and you preserve it with stuff like Bitcoin and Gold. That's the real formula.
Thoughts?
My thumbnail image was generated using Chatgpt.
My blogs including this one are not financial advice, just my thoughts and opinions. Thanks
