#+FILETAGS: @personal
:PROPERTIES:
:ID: db562075-08f2-408f-b50b-d0f05ca1c4fa
:CREATED:  [2013-04-15 Mon 08:20]
:MODIFIED: [2013-04-16 Tue 04:11]
:IMPORTED: [2023-02-08 Wed 19:22]
:END:
#+title: Why Bitcoin is good for the revolution

1. Libertarian Bitcoin proponents defend it being deflationary, because, as capitalists, deflation is a bad thing to them. Bitcoin is indeed deflationary. If you expect the value of your coin to rise, you will hoard your coins, therefore you will consume less and invest less.

Prices will go down as coin value goes up. Prices going down lead to less production, investments can also go down because Bitcoin is the best investment. This leads to lower production, which in turn leads to lower wages and demand, which leads to further decrease in prices, effectively kicking in a positive feedback loop, a deflationary spiral.

The main problem with capitalism is over-production. Deflation is good for de-growth and decreasing production. This is good for climate change and for depleting resources, and for decreasing energy use.

As a limited-supply money, Bitcoin is good for a sustainable, closed-circuit economy

Transitioning from a fiat-dominated to a gold-standard and Bitcoin-dominated currency in the coming years is perhaps our best chance at slowing down the economy.

Barcelona conference 2010 International Conference on Economic Degrowth for Ecological Sustainability and Social Equity

2. Bitcoin decentralises capitalism, transfers power from the current capitalists to a new type of capitalists. As a crypto currency, it opens the way for the next crypto currency that will include resource collectivisation and distribution of itself as distribution of wealth. It will also be interest-free

3. Bitcoin destroys the modern nation-state

Bitcoin seems it will go through cycles of up and down in price because it being perceived as good for hoarding at lower prices, followed by crashes as it is not used in trade at higher prices, so the network stops.

This is useful for the emergence of second generation crypto currencies, which may be redistributed evenly on all new comers, or computer power used to maintain the network in darknet, instead of mining cryptology

