Bitcoin is generated by consuming energy.
Does this make sense in any way ?
Maybe it does for the people that mine Bitcoin for a living.
But this make Bitcoin be more similar to gold than a currency.
But at least gold has intrinsic properties of value, some of them allowing this PC to work,
while Bitcoin has value just for an agreement.
Which was the biggest invention in the economics of the 2nd millennium ?
It was CURRENCY of course.
Till the 15th century people used commodities as a measure of value and instrument of exchange.
Then the Knight Templars realized that a piece of paper with the nominal value of 1kg of gold had the exact same utility of gold, without its extraction costs.
This allowed the economics to start growing, with some problem related to the fact that there is always someone that wants all the cake for himself, also if he knows it's going to hurt.
The biggest invention of 3rd millennium will be MONEY again.
But none of the currencies that exist till today are real money, because either to produce them there is a consumption of value, either they are based on debt with the target of pauperizing the society instead of enriching it.
A cryptocurrency, to be a real currency, should not be assigned to computers that mine it. A cryptocurrency should be assigned to people that make something good for the community.
Steemit is just doing it, but I think the times are ready to do a big improvement, starting the STEEM bank.
Here is the plan:
Steem is generated to fund a business that is recognized useful by the community.
The person getting the Steem has a debt with the community, for no interest, but he commits himself to accept Steem as payment for his business.
This business model would work also if none of the financed companies would pay their debt with the Steem community (the reason is simple : money based on debt is a scam).
But I would expect that most people would pay the debt, for a reason of image and respect of the other people that believed in their idea.
The debt being paid back would help to keep the value of Steem high compared to other currencies, allowing an exponential growth of backed activities.
Moreover, this would create a MARKET for Steem, bouncing its value.
If you have any doubt please comment my post!
I don't think declining payout makes any sense from an economic perspective, but I did it just as a confirmation of the importance I give to this matter.
And sorry for my english isn't great, I am italian and I am improving! (:
Simone Ruggeri - freiheit