Not everyone is thrilled about supercoins.
According to the famous copy-and-paste meme, Bitcoin holders will become new aristocrats as Bitcoin becomes the dominant global currency:
The meme is part of a broader vision of the future of Bitcoin, and it is a semi-serious but often unpleasant story that can be summed up under the title “Citadels of Bitcoin”: A vision of a future in which Bitcoin will become of great value. Fraudsters become men, literally protecting their coins in castles.
The Citadel meme originated from a Reddit post written by someone claiming to be a time traveler (they asked for a goal for a million dollars in 2021, if you’re wondering), and it even inspired you a short movie. …
But despite the farce and the apparent fantasy behind the meme, the economist now warns that this may not be far from reality if Bitcoin succeeds in its mission of achieving monetary supremacy.
Academician John Danielson of the London School of Economics wrote on the Research Center for Economic Policy and Research website an article yesterday envisioning a future in which Bitcoin aristocrats “stimulate” social and populist divide “through extreme inequality in wealth:
First of all, the current owners of Bitcoin will be the richest people in the world, as they compete with the kings and emperors who have ruled empires for centuries. They will have literally all the money. They can buy whatever they want. This is not true. ”Compared to the amount who today owns assets through all pension funds, equity funds and everything else, this is a small group of people.”
The government will be forced to “defend or attack” this new class of gentlemen, those who have achieved “rank” only through early purchase. They will not contribute to the development of society. ”
Uncertainty and outrage aside, Danielson finally concluded that such a future “cannot” happen because Bitcoin is not a suitable unit of account due to price stability. Because of these “internal contradictions,” Danielson wrote, “Bitcoin’s price will drop to zero.”
Economic analysis that arrives at the same conclusions as time-traveling editors do not have the same gloom about a hyperbitcoinized world. In many cases, this has proven to be a boon for countries struggling with inflation.