As someone who really has no stake in this (yet), I would like to clarify my personal reasons. While I mostly explain the issues I bring in terms of helping the poor, my ultimate agenda is to help everyone. I come here looking for potential in solving a much greater problem - that being the global economy. Stay with me…
Oil and coal are crashing hard today. They could lose 8% of their output due to bankruptcies in 16 months. This could cause the entire global economy to crash. However, renewables are beginning to get their stride (my field) and are set for some game-changers to take off. The net effect is a race between demand for fossils falling and price falling with the caveat that price needs to be high enough to maintain solvency for those still producing fossil fuels at all times. If demand doesn’t fall enough, prices spike and the economy crashes. If demand falls too fast, fossils crash and the economy crashes. It’s a very close tight rope for the next 16-24 years. This is all debatable but not worth it because it is going to go this way. The tide switching toward global warming being serious will only accelerate this but isn’t even a factor yet. It’s only based on supply/demand so far.
The relevant point is that fiat is 20-30% based on the perpetual growth of fossil profits (not total revenue). The only way we got out of the last recession even a little is that the bubble was shifted to unconventional fossil fuel derivatives. That’s failing and it will wipe out the majority of the financial derivatives. That’s 17-22% of GDP and could cause more problems. However, if that balance above is maintained, renewable jobs and “substitution” jobs will carry the productive economy. All this is fine but still not directly relevant to this discussion. Until now.
A crash in the financial sector will take out credit and bonds and savings and may take out the stock market (not kill but devastate for a while). Fortunately, if there is a viable alternative economy for people to migrate to, the fiat system cannot hold the entire economy hostage. They can’t do more bailouts because it will drive people to the cryptos leaving them worse off. They can’t do taxes, or jobs programs or social safety nets or lowing interest/bond rates and they certainly can’t create another bubble (I’m talking to you, retirement plans). Basically, their hand is forced to work in the productive economy or go the way of the dinosaur. Gold is often seen as an alternative but it’s not because it’s under their control as well. Without alternatives like bitcoin (with it’s significant base) or Safecoin (with it’s lowest level market solutions) we could hit major chaos. However, with those alternatives, competition ensures they play at least as fair as the cryptos can offer. And really, it’s only the perception of having this alternative that would ease the problems enough.
With technological unemployment gaining steam, this becomes a double-whammy for driving people away from fiat. And this one isn’t just affecting the poor. It hits white collar just as hard as blue and no-collar. Again, this game will virtually be over by 2030. And the only thing left to maintain any type of money based economy is to have the remaining automation sector pay for the no longer working labor sector. There literally is no other way because automated systems don’t volunteer when programmed to optimize their return.
And yes, its true that a resource based economy of some flavor (there are many) is a potential solution to no longer having a paid work force but the transition still has to begin to work in today’s debt-based economy first.
All in all, I’m suggesting that you guys should really settle the differences and plan for an exodus from fiat to the cryptos, of which I personally hope a significant portion will go to Safecoin/MaidSafe. If that’s only 1%, that’s still huge but if it’s 20% or even 60%, it doesn’t seem that today’s aggregate crypto offerings can even think of how to handle that. The better the digital currencies appear in the eyes of the public, the more attractive they will be seen.
So, do you want to change the world for the better or