Re:Mozilla Foundation pausing cryptocurrency donations
by int_19h on Friday January 07, 2022 @11:58AM
(#29841541)
I don't see how decentralized supply of money is "giving up on society". Most of human history did not have centralized supply of money, and that did not preclude highly developed societies.
The problem with centralized supply of money is that it creates a single point where too much power is concentrated. Even when governance is democratic, concentration of power invites its abuse - and the larger the scope of such a government, the more lucrative the abuse. Within a small, tightly knit community that has direct democratic governance, directly controlling its internal monetary supply is fine, because power can be kept in check at that scale. But you still need some common medium of exchange for those communities to interact economically.
The problem with Bitcoin isn't that supply is decentralized, but rather that it's hardcoded as fixed in the long-term - because the people who created it were gold bugs. But that's not a fundamental problem with cryptocurrencies - you could have one where the supply grows steadily, or better yet, one where such growth is controlled collectively by actual users of the currency.
The problem with centralized supply of money is that it creates a single point where too much power is concentrated. Even when governance is democratic, concentration of power invites its abuse - and the larger the scope of such a government, the more lucrative the abuse. Within a small, tightly knit community that has direct democratic governance, directly controlling its internal monetary supply is fine, because power can be kept in check at that scale. But you still need some common medium of exchange for those communities to interact economically.
The problem with Bitcoin isn't that supply is decentralized, but rather that it's hardcoded as fixed in the long-term - because the people who created it were gold bugs. But that's not a fundamental problem with cryptocurrencies - you could have one where the supply grows steadily, or better yet, one where such growth is controlled collectively by actual users of the currency.