"With limits on the maximum availability of crypto-coins, and their destruction upon use (transfer, verification, application) or acts of God (solar flairs, for instance) our modern economy will likely need to shift to deflationary/sustainability model."
Although I agree with the premise, I fail to see how it applies. Bitcoin may not be inflationary in coins, but it is definitely inflationary in value. At the core, it is no different. There is no economic motivation for someone to prefer sustainable harvesting a forest for moderate gains than it would be to clear-cut for maximum gains and invest in crypto. In fact, all 'rational' actors in this Bitcoin club would most certainly advise the latter as Bitcoin is poised to provide some substantial returns (and if it is adopted globally as you suggest, then it would be extremely massive returns). Thus making Bitcoin more valuable than fiat. The problem in our natural world is that fiat was more valuable than it, thus people constantly chose money over nature. So, if Bitcoin is poised to be more valuable, this will seem to only compound that core issue.
" Japan (among other countries) already is instituting negative interest rates, further propelling the country's economic deflation"
This is also why there are such high adoption rates for crypto in Japan, to avoid these deflationary policies.
"The era of overconsumption and debt-based money system is imploding on its own weight;"
Absolutely agree!!!
"thankfully, we have an alternative vehicle that may ease the transition into a deflationary/sustainable economic model."
This is what I fail to see. As evidence by Japan avoiding deflation by transitioning to crypto. Article that is fearing Canada may move to deflationary policies and advocates crypto as a safe haven If the U.S. were to implement deflationary policies, we would see a massive expansion into the value increasing crypto. How much more difficult would it be to implement a negative interest model on Bitcoin? I don't see that ever happening without wise central planning.
I once thought Bitcoin to be this tool. But now I am beginning to question. I'm thinking the role it may play in the future is a coin I would like to create for inter-physical-community exchanges that bear negative interest that comes back to its users as a form of UBI. This would make the currency less valuable than our natural world and would encourage circulation, without the fear/need to hoard in order to meet future needs.
I say this fairly confidently: Any currency as a store of value is unsustainable! A currency needs be a medium of exchange and nothing more, else it promotes stagnant economies, recessions, depression, and places a higher value on it than the rest of the natural world.
So, with all that. I do believe the technology can play a role in currencies of the future. I'm presently designing such a coin that would be applicalbe to Our NeighbourGood. That is a negative interest, UBI coin. That holds a greater negative interest (tax) to exchange to other more universally accepted currency for spending outside the system. This promotes in systems value growth. The tax would be stored by a decentralized bank and money would be allocated by projects put forth and approved by the community of users. This way the negative interest and taxes are all in the immediate best interest of users, so as to not be a barrier to adoption.
This system, in my opinion, will create far greater wealth (all forms of capital) for its users than any present crypto-currency I see which only promises financial wealth.
With all that. I now am going to write a full write up on this new coin for Our NeighbourGood! Something I have been wanting to do and now feel fully inspired to do so. Thank you :)
You may want to look into "Ithaca hours" or "Mountain hours" for currency use in NeighborGood. Each business or service provider generates currency based on the availability of resources (man "hours") that gets traded. I think similar concept can be utilized for NeighborGood, using block-chain with either expiration date upon which the coin self-destructs, or time-decay program imbedded.
I think we will need a store of value currency as well as time-decay currency. If the store of value currency is tied to or backed by undeveloped resources (forests, un-mined metals, untapped aquifers, etc.) then the store of value currency will truly represent the cost of deleting these "goods" for commodities.
Sure, by why have another mechanism (backed by) what could just as easily be the real store of value? A house is a store a value, a highly productive food forest is a store of value, deep relationships are a store a value, knowledge, and experience are stores of value, tools and materials are stores of value. With so many available options for storing value, why have a liquid version as a store? A highly-liquid store of value will always trump (economically) less-liquid stores of value, thus creating an artificial demand for it... So, why go through the effort to create a currency backed by real stores of value, when it's merely a counterfeit?
I have known of ithica hours for some time! Unfamiliar with mountain hours. I like the concept, I would like to expand on a bit more it though because I don't want to delineate 'time' as a currency. I still like how the market dictates price and if time is involved that tends to get distorted as it's difficult to factor in other forms of capital, such as knowledge and experience. I.e. a highly skilled tradesman's 1 hour is more valuable than a non-skilled tradesman given the same task... So, currencies backed merely by hours are a bit difficult... I realize Ithica hours has implemented some strategies to circumvent this problem, but I would like to avoid if from the start.
Haha, I am reminded of the proverbial desert nomad who considers two kontars of water jugs worth more than a lake.
Hahaha, exactly :)
Hahaha! Your comments are the actual best things I read! I'm going to co-opt this sentence. I feel it belongs in more general conversations :)
It is an idea from Frank Herbert, though I don't recall the exact quote.
Here it is! ONC :)
https://steemit.com/money/@rieki/onc-a-new-coin-for-a-new-society-a-solution-for-ubi-decentralization-and-ecological-destruction-all-addressed-in-one-coin