Jimmy-Song
Jimmy Song

How Bitcoin Changes Incentives – Jimmy Song

May 19, 2020

Jimmy discussed how Bitcoin changes incentives from 4 levels—Individuals, company, nation and global. The state is printing money at 7% annually. Fiat money, gold, real estate and stocks are losing its store of value. When there’s no store of value, people end up consuming.

From a company level, companies use extra printed money for growing its size. Google and Facebook pay high salaries, hiring all talents to prevent competitor from growing. Winner-take-all. It’s no longer about innovation, inventing new products, but innovating on how to manage people.

From a national level, entire banking system printing create money to support big companies; education system shapes creative human beings to specific roles for big companies; regulations are created to protect companies and etc,.

From a global level, whenever US expands amounts of dollar, it demonetizes other currency. People flush into dollars, as dollar has large demand on global scale, which resulted in hyperinflation in their own country.

Bitcoin is a store of value and not controlled by government. As politically neutral money, it can end dollar hegemony, thus making a fairer world.

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