All it takes for an economy to fail is for the belief in it to falter, for people to lose faith and go from users to those who abandon the narrative, perhaps to begin their journey in a new direction, start a new story. When it comes to moving direction on mass, social proofing goes a very long way and when the companies that people know and use, the ones that they believe are successful, the leaders intelligent and competent business leaders start to abandon the economies that that they have benefited from...
I wonder how fast the global paradigm can shift?
The companies are starting to "take a chance" on Bitcoin and it won't be long until the virus spreads. More will follow the lead after sitting on the fence and even more will FOMO so as not to miss out. The visionaries and early adopters will set the pace and the chasm will close and the majorities will follow until the final holdouts will either get in, or miss out completely - but by that point, it won't matter. There will be so much wealth flowing through the new economy and so little on what was left behind - that it will be, business as usual.
The difference of this economy and this business, is that the economic borders have all but disappeared and rather than users having their capital held hostage by sanctioned institutions, they will be the freest they have ever been to decide what and where they spend their wealth.
It all sounds very idealistic and perhaps for many, impossible, but if the past informs the future, then economic collapse is exactly how things change, every empire has fallen and wealth has changed hands, changed flow, changed direction - it doesn't matter what token signifies that wealth, dollar or satoshi, the wealth is in the activity. An economy with reducing activity contracts, one with increasing activity expands.
"Consumer sentiment" tracks the attitude of households and their propensity to spend, which points to the demand and the supply mechanisms - but when the businesses themselves begin to lose faith in the very currency consumers are using, they no longer want to be paid in it - they will look to find another vehicle to transfer wealth and track their progress.
But, for it to have value, they also have to be able to trade what they collect from their clients for what they want from other businesses. We are all in the game of consumption in some way, it is what makes the business world go round. It is a complicated process of good and services that are produced by other good and services and managed by other goods and services - the supply chain is a production line of goods and services that each take a small slice of the pie along the way, while employing the very people that are getting sliced.
Economies are an interesting animal that affect every factor of our lives in some way, they take up our thoughts when we feel we have too little with which to take part, take up our thoughts when we have more than enough too - fear in both directions - one wanting more, one scared of losing all that is gained. I wonder if there is a more pervasive influence on our thoughts than our position in the economy - what we can buy, sell, trade and how all of these things affect us and the people we care about - can we afford good enough food for our children, the right education, does the car we drive give the right message or do we have enough coins for a packet of cigarettes?
How often does money enter your thoughts? What would it take to change your mind?
Taraz
[ Gen1: Hive ]