The very first thing you learn about economics is not about price and demand. It’s about free market. Free market with competition and minimum regulation from governments is the only way for economics to grow and people to prosper as far as we know for today.
Look at any centralized economics in the past or present and you’ll understand.
The USSR – failed, North Korea – is going down. Low quality of life, deficit, poverty etc.
However, if we look at Nigeria we see almost the same picture – lack of small business, terrible education, hunger, ecological issues etc. That’s how we get to the second point.
Free market must be regulated by government. However, irresponsible and mindless regulation can lead to enormous challenges for the whole country and actually kill the market itself. Here we came to the sticking point for all economists. How this market should be regulated to become the most efficient and productive in a whole.
I’m not a scientist and maybe I think like any crypto enthusiast. Anyway, I feel like blockchain is a technology that will really help us to control regulation in any economics of the world. It leaves governments powerful and important part of regulation – the law. They still will be able to protect their sitizens from fraud, distribute external costs etc. Actually, blockchain makes it easier to control and prevent any frauds and crimes in finance industry. At the same time, all competitive issues we’ll be solved and regulated by the market itself. What do you think, can blockchain improve competition and protect us as a consumers or entrepreneurs from monopolies or oligopoly?
I think – yes. If you look at almost any blockchain project, it’s main feature is elimitation of any mediators. Thus we can highly reduce costs. Moreover, blockchain techonologies, all this distributed ledger stuff can help small companies to use cloud services for solving security problems, data analysis issues etc. Small businesses can develop their services without becoming a bankrupt and more and more business opportunities will be available for people all over the world.
I’m pretty sure that this can improve the quality of competition in lots of industries and reduce monopoly and oligopoly in any country. What you guys think?