RE: RE: Bitcoin Maxis Will Never Understand Hive

Thanks for your detailed response. I will start by saying I disagree with you completely and find you analysis flawed.

I do not consider myself TOXIC, although I am close to maximalism,

To be blunt, the result of misguided ideology.

Monetary elasticity is a controversial topic, in which a lot of understanding of how the market works is needed.

That is true a lot of understanding how the market works is required. However it is only controversial to the marxist, gold bug, bitcoin maxis, and WEF, all who think they can control things.

The reason why monetary elasticity is not only valud, but a central part of our economic and monetary life is because the business cycle. No matter how hard the aforementioned groups try, this has gone on for centuries.

Any why is that? It is based upon human nature. When things are going well, we forget about the bad times and engage in excess. This happens at most levels causing massively booms that peak. When things reverse, the human emotion of fear takes over and the trend reverses.

Hence a money supply has to be supplied to meet the needs. Bitcoin, with its artificial market cap of 21 million (what happens if the economy needs 25 million BTC) cannot provide this.

The current system, based on inflation and control by governments and central banks

I am not exactly sure what you mean by this but if you are referring to the money supply, here again you are way off base. For the major currencies (USD, EURO, GBP, JPY) the governments nor central banks control the money supply, outside of the banknotes which are central bank money. The digital version, ie what we use on a daily basis, is controlled by the commercial banking system. This is the nature of fractional reserve banking. To state the governments and central banks are responsible for much to do with money, if that is what you are saying, is incorrect.

the gold standard has been living among us for much longer without causing any inflationary problem

This is a myth that is not to be believed. Since the 1500, when Luca Pacioli invented double entry accounting, you had ledger money. This is what the European banking houses have used for centuries. It is also what merchants used throughout history. Coinage came with an assortment of problems going as far back as the Great Bullion Famine.

Even in the United States, the banks were creating covertible notes which provided elasticity to the monetary system. At the same time, the Eurodollar system started in the 1950s and was creating all forms of money (this is where the Great Inflation of the 1970s actually came from). Finally, while the US pegged it, the price of gold had a free floating exchange rate around the world.

Finally, the Lightning Network, Layer 2 built on Bitcoin, solves many of the handicaps that the Bitcoin Blockchain has.

Exactly my point. Bitcoin is a handicapped network that is now trying to be replaced by a network that has no incentive model built in. Why build lightning when Bitcoin was suppose to solve those problems.

Over time, many more layers of functionality and use of the blockchain will be added

Maybe but the track record is not great.

Dont get me wrong Bitcoin has some properties that will make it most likely a good hold. For that reason, you maxi from a price standpoint could turn out well. However, from a network point of view, it might be misplaced. You even stated the transfer layer is being moved to layer 2.

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