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Bitcoin proponent: The only two choices in current voting system are red Goldman Sachs vs blue Goldman Sachs

Priya

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Bitcoin proponent: The only two choices in current voting system are red Goldman Sachs vs blue Goldman Sachs
Source: Unsplash

Andreas Antonopoulos, a well-known Bitcoin proponent and author of Mastering Bitcoin, spoke about Ryan Bundy, a candidate for governor of Nevada and his plans on implementing cryptocurrency and blockchain technology to solve the problems encountered by people, in his recent Q&A video on Youtube.

Antonopoulos was asked about his suggestions on implementing blockchain governance into the current government. This was followed after the statement about Ryan Bundy planning on bringing blockchain into government first.

The governor candidate wants to introduce Nevada insured metals-backed cryptocurrency and plans to educate, incubate and promote the use of blockchain technology in the state. He plans on creating a crypto-friendly environment, and encourage crypto-influencers to visit and develop their business in the state.

Antonopoulos stated that he does not think that blockchain can fundamentally change the governance system until they are decentralized. He went on to say:

“Most of the proposals I hear from people in this space who grabbed the word blockchain are indistinguishable from simply saying database or cloud this is a simple litmus test. Take the proposal of your favorite new blockchain system that someone’s proposed in government replace the word blockchain with database and if it still reads correctly, it’s not really anything interesting.”

He continued to say that it would be a highly centralized database, wherein the responsibility will be given to one party and that this is “business as usual with a sprinkling of fairy dust” on top. Antonopoulos added that all the government-driven blockchain projects he has come across so far are fundamentally about asserting control over the blockchain. This means that their business would continue to be the same, except with the disguise of being something revolutionary.

Antonopoulos further stated:

“They’re not at the moment. We can’t even get people to use this as money without sacrificing their independence and autonomy because they, as I just mentioned, they go to custodial services. I don’t see any way that you can have people use it to vote, for example, and again the problems we have in our democracy have nothing to do with validating whether the votes were counted correctly or whether there was fraud.”

The author stated that the problems which are currently faced by people are related to disenfranchisement on a massive scale and complete “voter apathy”. This is because people are given only two choices in the current voting system, red Goldman Sachs vs blue Goldman Sachs. He added, “picking the color isn’t democracy.”





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Bitcoin

Is the scarcity principle a factor in Bitcoin’s valuation or is it just crypto white noise?

Biraajmaan Tamuly

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Is Bitcoin being scarce changes the way we put forward its valuation or is it just Crypto white noise?
Source: Pixabay

The aspect of scarcity is fundamental to the Bitcoin community, with its limited availability often seen as a virtue in a world where governments have unlimited power to print fiat currencies. With the value of Bitcoin increasing day by day, the virtual asset is getting close to its saturation point.

At press time, 17,763,712 BTC were in supply, very close to the 21 million Bitcoin supply cap. However, the last BTC will be minted on 7th May 2140. That is almost 100 years from now. So, there is still a significant period of time before Bitcoin’s production halts for good.

Many in the community have suggested that Bitcoin’s scarcity has genuine value because it makes the virtual asset “deflationary.” In light of Facebook’s announcement of “Libra” coin, it has been argued that it will not generate any circumstantial threat to Bitcoin, solely on the fact that Bitcoin was scarce and Libra was not.

A recent Medium article released by Forbes summed up the scenario. It stated,

“It will take time, but Facebook will greatly accelerate the pace of teaching people about cryptocurrencies. And when this happens, more people will turn to bitcoin for one simple reason — bitcoin is scarce, while Facebook’s cryptocurrency is not.”

Another aspect that explains the importance of Bitcoin’s scarcity value is its comparison with Gold, which is also a scarce commodity. A key model that explains Gold’s intrinsic value in the market is the Stock to Flow ratio.

The S2F ratio of a commodity explains the scarcity value as it is the amount of an asset that is available to the amount that is produced annually. Moreover, the higher the S2F value of an asset, the lesser the inflation rate attached to it. At press time, Gold had the highest S2F value, but Bitcoin was close behind and it was stated that by August 2020, Bitcoins S2F’s value would be 55.2 to Gold’s 62.

However, a significant counter-argument against Bitcoin’s scarcity in the community was put forth, with none other than legendary investor, Warren Buffet, claiming that Bitcoin had no “intrinsic value.”

Recently, Peter Schiff, CEO at Euro Pacific Capital, explained that Bitcoin was not scarce due to the availability of other crypto-assets which made Bitcoin’s scarce value quite redundant since crypto assets, with better properties and characteristics, could be created anytime.

The argument was widely opposed by a majority of the community, with certain crypto-enthusiasts deciding to respond to the post. Twitter user, @Sisko8, said,

“The Mona Lisa is not really scarce, as there is an infinite supply of other paintings with identical or superior painting techniques that can be created out of 3$ paint and canvas, including photocopies of the Mona Lisa.”





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