Bitcoin price volatility is due to the fact it is not a mainstream currency. The 'cure' to that is widespread acceptance. The currency is only 4 years old, so you can view the volatility as birthing pains or as a speculative bubble, and only time will be the judge. I am not going to make proclaimations about the future under the presumption I possess some Deplhic insight.
Currently, my only method of using Bitcoin is online shopping. If I lived in Singapore, Jakarta or Stockholm, that would not be the case. Fortunately for me, I can pay for air travel using BTC as well as many services at my destination. So if I wanted a BTC holiday, using only Bitcoin, that is totally a thing I can do. All I need is my laptop, a flash drive and a toothbrush.
Debt slavery is kind of a stupid fucking buzzword, and you don't really do much beyond telling everyone you read embarrassingly stupid internet rants when you say it on its own. Insofar as it can refer to any social problems that aren't bullshit someone made up, it refers to the increasing inability of the lower and middle class to support themself or the increasing debt overhang and its catastrophic effects. The former of those is a result of wealth inequality (and has fuck all to do with central banks). The latter of those is a result of deregulating the financial sector in such a way that they could sell bundles of bad loans for cash upfront at no liability while telling everyone those bundles were super-safe (and has fuck all to do with central banks).
Fuck me. Keep flinging shit, clicking your fingers and beating your chest. Maybe if you rattle your cage enough, your handlers will take it as a signal you need jacking off.
Wait...that is unfair. Chimpanzees have been into space and I taught one how to play Pac Man the other day, so I'll try and explain flaws of the financial sector (endogenous money creation), how that competes with actual economic growth (tangible productivity investment) and why central banking is bad, as simply as I can.
To paraphrase Holmes; in the real world, banks extend credit, creating deposits in the process, and then look for the reserves later. The question then becomes one of whether and how the central banks will accommodate the demand for those cash reserves. In the very short run, Central banks have little or no choice about accommodating that demand.
Banks are able to do this due to the nature of fractional reserves, with equity requirements for credit essentially being non existant throughout much of the financial sector.
To plagiarise Keen; The Central Bank has an obvious motivation to lend: it doesn’t want to destroy capitalism. But why should Seller Bank lend to Buyer Bank in this case? Because it now has excess reserves relative to its Reserve Requirement: the transfer of funds from Buyer Bank increased its Reserves by precisely as much as Seller’s Deposit account rose, and since the Reserve Requirement is a fraction of deposits (10 per cent of household deposits only in the USA – there is no reserve requirement for corporate deposits), it now has a lot more Reserves than it needs. Better to lend them at the interbank rate to Buyer Bank than to get no return (or a very low return) on the Reserves themselves.
Finance performs genuine, essential services in a capitalist economy when it limits itself to providing working capital to non-financial corporations; funding investment and entrepreneurial activity, whether directly or indirectly; funding housing purchase for strictly residential purposes, whether to owner-occupiers for purchase or to investors for the provision of rental properties; and providing finance to households for large expenditures such as automobiles, home renovations, etc.
It is a destructive force in capitalism when it promotes leveraged speculation on asset or commodity prices, and funds activities (like levered buyouts) that drive debt levels up and rely upon rising asset prices for their success. Such activities are the overwhelming focus of the non-bank financial sector today, and are the primary reason why financial sector debt has risen from trivial levels to their current peak.
Capitalism’s crises have always been a product of the financial sector funding speculation on asset prices rather than funding business and innovation. This allows financial sector profits to grow far larger than is warranted, on the foundation of a far larger level of private debt than society can support. This lending causes a positive feedback loop between accelerating debt and rising asset prices, leading to both a debt and asset price bubble. The asset price bubble must burst—because it relies upon accelerating debt for its maintenance—but once it bursts, society is still left with the debt.
Are you starting to see the difference a full reserve, peer to peer currency system could have on an economy yet? My imagination is running wild. The stories of BTC investment in human capital throuout poor Asian and African nations already warms my heart as both a Libertarian and a Socialist, so I have genuine hope for the future if this evolves into a revolutionary practice, as oppossed to the latest in a long line of trends.
...Your choice is sedition of sedation. Any number can play.
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