What Is the Crypto Equivalent of a Stimulus Package?

[xerxesramesepolybius]

36 minutes ago, MistaPrime said:

It would be the equivalent of food stamps. How do current food stamps economics operate?

The US govt pays for them from taxation and borrowing

[enrique11]

8 minutes ago, AlejoMoreno said:

That's why people won't spend all of those coins that the USA minted for a temporary time (in other amounts than the normal ones today). 

 Perfect "non-cryptocurrency" example.

I just hope Covid 19 doesn't do any worse to cryptos than the governments' have already done.   I'm still hodling, but the US government has made it extremely difficult for crypto enthusiasts to remain in this space, and the US gov (Mnuchin in particular, a former investment banker) said that more crypto regulations are forthcoming.  These people are pro-corporate, pro-special interests, and anti-American in terms of serving the interests of the American people, IMO.

[Wandering_Dog]

3 hours ago, MistaPrime said:

I wrote an article here titled "How Will Bitcoin Handle Economic Halts and Stimulus Needs?" and I tied it with a global vision with XRP and the Internet of Value.

But what do you guys think about that question?

If we had Bitcoin or XRP or any crypto being the world's currency. Then what can we do in case of a pandemic where people need extra money to survive since the economy is halted? We certainly can't just print more like the Feds do.

Does XRP or any other Crypto have a solution to this?

There is nothing. 

BTC and XRP are derived from an economic ideology that believes economic systems are self-correcting. Using now as an example, what would happen if we had an XRP or BTC based system:  people scramble to sell all assets, no one buys, ALL prices fall to zero, unemployment hits 100%, total political collapse, civilization ends. And that's it. 

[xerxesramesepolybius]

1 minute ago, Wandering_Dog said:

There is nothing. 

BTC and XRP are derived from an economic ideology that believes economic systems are self-correcting. Using now as an example, what would happen if we had an XRP or BTC based system:  people scramble to sell all assets, no one buys, ALL prices fall to zero, unemployment hits 100%, total political collapse, civilization ends. And that's it. 

Ordinarily you would a pandemic for that

[Wandering_Dog]

57 minutes ago, AlejoMoreno said:

What? So if I pay you 10 "stimulus" dollars for groceries, do those dollars that I gave you get burned if you don't also spend them?

If not, then which dollars get burned and which don't?

You can program a digital dollar if you wanted to, his statement is not fantasy, its just a political decision, and honestly it makes sense. Gabor mentioned this the other day.

[Wandering_Dog]

2 minutes ago, xerxesramesepolybius said:

Ordinarily you would a pandemic for that

Nope, just run the system for 10 to 25 years, and it happens every time.  

[MistaPrime]

Imagine this;

Step 1: The elite know that currencies have to go back to a gold standard due to inflation. Otherwise they are worthless. And also to end the cycle of debt one Bitcoin needs to be $10 million dollars.

Step 2 - They decide to create Bitcoin and it becomes world's reserve currency. All currencies are backed by Bitcoin rather than gold.

Step 3 - All fiat currencies switch to a digital version such as the digital dollar recently proposed by congress. 

Step 4 - All currencies use XRP for interchangeability.

Looking at it like this, it seems all the pieces are falling into place. Satoshi might have just been a group of individuals trying to reform the world's economic system.

[xerxesramesepolybius]

16 minutes ago, MistaPrime said:

Imagine this;

Step 1: The elite know that currencies have to go back to a gold standard due to inflation. Otherwise they are worthless. And also to end the cycle of debt one Bitcoin needs to be $10 million dollars.

Step 2 - They decide to create Bitcoin and it becomes world's reserve currency. All currencies are backed by Bitcoin rather than gold.

Step 3 - All fiat currencies switch to a digital version such as the digital dollar recently proposed by congress. 

Step 4 - All currencies use XRP for interchangeability.

Looking at it like this, it seems all the pieces are falling into place. Satoshi might have just been a group of individuals trying to reform the world's economic system.

How you sold the movie rights?

[AlejoMoreno]

9 hours ago, Wandering_Dog said:

You can program a digital dollar if you wanted to, his statement is not fantasy, its just a political decision, and honestly it makes sense. Gabor mentioned this the other day.

Sounds like a dumb, overly simplified idea, and none of you have successfully explained how this makes sense. Programming it as in.....is the dollar in the supply or not?

[jcdenton]

11 hours ago, Wandering_Dog said:

Nope, just run the system for 10 to 25 years, and it happens every time.  

'tis a well known fact that every 10 to 25 years 

11 hours ago, Wandering_Dog said:

civilization ends.

 

 

[Wandering_Dog]

'Run the system' means you enter some code on your computer to create a model and run a simulation. If you ran an economy with BTC or XRP in reality, you get a crash and then everyone abandons the currency. If you somehow forced everyone to not abandon XRP or BTC as the unit of account after the crash, civilization as you know it will end, as everyone becomes occupied with killing creditors, credit, and payment systems. 

[Wandering_Dog]

4 hours ago, AlejoMoreno said:

Sounds like a dumb, overly simplified idea, and none of you have successfully explained how this makes sense. Programming it as in.....is the dollar in the supply or not?

Right... You have an account, it is represented by a positive number, something like 5.56. Then you have another account, represented by another number, say 5.57. The first account will have a balance of 5.56 USD until you die, the bank fails, or the currency is no longer supported. The second account will be reduced to 0 next monday, so you have until sunday 23:59 to spend the 5.57 of USD_time_limit_Monday. Say you don't spend it, the balance falls to 0. The idea is that you have multiple currencies which trade at par for one another, but some have characteristics which leads them to recirculate very quickly, then disappear. You can't build meaningful structures of debt on top of it, because of its temporal characteristics. People don't save it, because they can't. And any fear you have of permanently distorting the money supply is eliminated, because this currency disappears on a set date (for example). You can imagine an infinite amount of such denominations of money, decreasing with time, decreasing with transaction number, decreasing with whatever, give it a think.   

[jcdenton]

16 minutes ago, Wandering_Dog said:

Right... You have an account, it is represented by a positive number, something like 5.56. Then you have another account, represented by another number, say 5.57. The first account will have a balance of 5.56 USD until you die, the bank fails, or the currency is no longer supported. The second account will be reduced to 0 next monday, so you have until sunday 23:59 to spend the 5.57 of USD_time_limit_Monday. Say you don't spend it, the balance falls to 0. The idea is that you have multiple currencies which trade at par for one another, but some have characteristics which leads them to recirculate very quickly, then disappear. You can't build meaningful structures of debt on top of it, because of its temporal characteristics. People don't save it, because they can't. And any fear you have of permanently distorting the money supply is eliminated, because this currency disappears on a set date (for example). You can imagine an infinite amount of such denominations of money, decreasing with time, decreasing with transaction number, decreasing with whatever, give it a think.   

No one would accept this as payment on Sunday, therefore no one would accept it on Saturday, etc. And how could it trade at par with a currency that doesn't disappear?

[AlejoMoreno]

56 minutes ago, Wandering_Dog said:

Right... You have an account, it is represented by a positive number, something like 5.56. Then you have another account, represented by another number, say 5.57. The first account will have a balance of 5.56 USD until you die, the bank fails, or the currency is no longer supported. The second account will be reduced to 0 next monday, so you have until sunday 23:59 to spend the 5.57 of USD_time_limit_Monday. Say you don't spend it, the balance falls to 0. The idea is that you have multiple currencies which trade at par for one another, but some have characteristics which leads them to recirculate very quickly, then disappear. You can't build meaningful structures of debt on top of it, because of its temporal characteristics. People don't save it, because they can't. And any fear you have of permanently distorting the money supply is eliminated, because this currency disappears on a set date (for example). You can imagine an infinite amount of such denominations of money, decreasing with time, decreasing with transaction number, decreasing with whatever, give it a think.   

Thank you for taking the time to explain.

Your proposal still does not work. Your proposal, and food stamps in theory, is just a complicated way to print money.

So let's take the expiring account with $5.57.

Scenario A = You don't spend that money and then it expires on Sunday. No inflation.

Scenario B = You pay me $5.57 for a gallon of milk (expensive I know). Well on Sunday, that money is not going to expire because you used it, and paid me. So effectively on Sunday at 23:59, $5.57 has just been printed and added into the circulating currency because you spent it. 

Yes in your individual world, you can see it as a decrease but in the net of your and I activities, AKA our economy, $5.57 was just printed when you paid me and thus cancelled it the expiring date.

So if this was done on a grand scale and everyone was given these monies that expire on Sunday 23:59 each week, then the amount of currency in circulation will increase every Sunday by the amount of this expiring money that has been spent; because once this expiring money has been spent, then it can no longer expire. 

P.S. To your original point, yes you can program this digital dollar, but why?

 

Edited April 10, 2020 by AlejoMoreno

[MistaPrime]

@AlejoMoreno What if the money from Scenerio B can only be spend on hard assets once received? For example you cannot keep that money in circulation, it's money you have to spend on hard assets within a predefined time. Would that eliminate the inflation?