Yeah, this is really tricky. Even by shaking out weak hands and destroying short sellers it seems as though that wouldn't resolve the rehypothecation that would be the ultimate fate of paper markets. As long as people have trust in the institutions selling them watered down crap (1:150 paper contracts for instance) they will buy (reference my previous comment on ignorant masses). People buy paper silver/gold in droves, people happily trust USD (though that is waning to a slight degree). The core problem as I can see it is trust. If people don't trust institutions, they won't show up to purchase its products or engage in its schemes. Ignorance breeds trust, skepticism/knowledge(?) demands veracity. How do we precipitate a decline in trust of fraudulent institutions, how do we nudge this rather than waiting for them to collapse upon their own weight??
A bitcoin standard where paper bitcoin is equivalent to private key bitcoin is no different than our current fiat system, except that more institutions get to play the money printer game as they create paper contracts.
This all brings me back to your mention of disorder. Sadly, to me, it seems the only way you can create honesty out of fraud is through massive pain. Most people choose to take their health seriously right after the cancer diagnosis. Hyperinflation educates people on monetary systems. DUIs, firings, broken marriages wake up alcoholics. Ugh, sounds depressing, but feels real. If the bigs can be nudged to failure sooner than later, if the average person's trust in institutions gets rekts much sooner than later, I think the transition to a more honest system could be less destructive/disorderly.
We humans are a trip.
ThatGuy
npub10p…j89ky
2024-05-17 15:53:54
in reply to nevent1q…amcn
Author Public Key
npub10p92ekv52gmvx9l9rd9dccdy5t90ckdx6xme4vw34gqjgg3jc44qsj89kyPublished at
2024-05-17 15:53:54Event JSON
{
"id": "223fe465941d3aec4dcb7cfc317bcbc5d98c23af186f158d50b31855e6639e93",
"pubkey": "784aacd9945236c317e51b4adc61a4a2cafc59a6d1b79ab1d1aa01242232c56a",
"created_at": 1715954034,
"kind": 1,
"tags": [
[
"e",
"1d853828ba5be563d605ad648df32819c6d81398cbb37a3e64ec100cb1ddb9f1",
"",
"root"
],
[
"e",
"f357e7f98f25f81f0186906727ad88dadd657ee72f6cc8ef757acac81f40dacf",
"",
"reply"
],
[
"p",
"d3052ca3e3d523b1ec80671eb1bba0517a2f522e195778dc83dd03a8d84a170e"
],
[
"p",
"784aacd9945236c317e51b4adc61a4a2cafc59a6d1b79ab1d1aa01242232c56a"
]
],
"content": "Yeah, this is really tricky. Even by shaking out weak hands and destroying short sellers it seems as though that wouldn't resolve the rehypothecation that would be the ultimate fate of paper markets. As long as people have trust in the institutions selling them watered down crap (1:150 paper contracts for instance) they will buy (reference my previous comment on ignorant masses). People buy paper silver/gold in droves, people happily trust USD (though that is waning to a slight degree). The core problem as I can see it is trust. If people don't trust institutions, they won't show up to purchase its products or engage in its schemes. Ignorance breeds trust, skepticism/knowledge(?) demands veracity. How do we precipitate a decline in trust of fraudulent institutions, how do we nudge this rather than waiting for them to collapse upon their own weight??\n\nA bitcoin standard where paper bitcoin is equivalent to private key bitcoin is no different than our current fiat system, except that more institutions get to play the money printer game as they create paper contracts. \n\nThis all brings me back to your mention of disorder. Sadly, to me, it seems the only way you can create honesty out of fraud is through massive pain. Most people choose to take their health seriously right after the cancer diagnosis. Hyperinflation educates people on monetary systems. DUIs, firings, broken marriages wake up alcoholics. Ugh, sounds depressing, but feels real. If the bigs can be nudged to failure sooner than later, if the average person's trust in institutions gets rekts much sooner than later, I think the transition to a more honest system could be less destructive/disorderly.\n\nWe humans are a trip.",
"sig": "d3839572ea0a2e7ca9f3674e6655f919a104ab23f5bc7b9998200269366ed197ee1bb4b834024032563ae7cdcef6fa21805a503aee169b74c83bf64517b8ac00"
}