Image for post
Image for post
Photo courtesy of Denarium.com.

Building the crypto economy with declining inflation

Like it or not, Bitcoin is here to stay. And it looks like the crypto economy created by Bitcoin will eventually take over and replace the fiat economy.

Temporary — or rather natural — inflation can have its merits, contrary to what the proponents of sound money often claim.

For instance, the American Gold Rush was a period of higher inflation in the supply of gold. Yes, the increased output devalued the existing stock, but only temporarily until the economy caught up with it, and at the same time it helped build the American West.

Every gold rush on history has had the same effect. They have funded an expansion or an advancement. Partially it has been at the expense of the holders of the existing stock.

But…

Image for post
Image for post

As cryptocurrencies are extremely volatile with a tremendous upside potential, creating a monthly saving plan is an easy way to get aboard. Especially if you’re investing with smaller amounts or out of your salary, a monthly saving plan with friendly deposit reminders should be your top choice.

The leading cryptocurrency brokerage in the Nordics, the Finnish Coinmotion.com recently launched a monthly saving feature to help customers distribute their investments over time. By the way, the company behind Coinmotion.com, Prasos Ltd., is a regulated payment institution, licensed and supervised by the FIN-FSA.

In this article, I will walk you though setting up a monthly saving plan on Coinmotion.com so that you too can take advantage of investing in cryptos and reducing your risk by distributing your investments over time.

Creating an account on Coinmotion

If you already have a Coinmotion.com account, you can skip this first step. Otherwise, keep reading.

The obvious first…

Image for post
Image for post
Bitcoin has potential to save the planet, but please don’t leave your physical coins in the grass.

Environmental benefits outweigh the energy cost

Yes, mining consumes electricity. However, what we get in return is not just a blockchain and a cryptocurrency, but an entirely new economic system that — among other benefits — is also better for the environment.

A lot of bits and ink have been poured into both proclaiming the death of Bitcoin and cursing how Bitcoin’s electricity consumption will be our doom. The unjustified extrapolations on energy demand and other misconceptions have been extensively debunked elsewhere, but almost everyone seems to forget or ignore how widespread adoption of Bitcoin is going to make the world a better place.

I have previously written on the topic of trustlessness and its benefits, but one of the commonly overlooked qualities of Bitcoin is its massive potential to reduce waste of all kinds. …

Image for post
Image for post

The Ultimate Decentralized Start Over

Governments have traditionally both issued currency and provisioned personal identities. Bitcoin is breaking the first of these strongholds and Libra promises to break the second. Calling the possible consequences merely revolutionary feels like an understatement.

Image for post
Image for post
Digital identities are our key to the future society. Photo by pawel szvmanski on Unsplash

The Ultimate Decentralized Start Over

Governments have traditionally both issued currency and provisioned personal identities. Bitcoin is breaking the first of these strongholds and Libra promises to break the second. Calling the possible consequences merely revolutionary feels like an understatement.

Most commentators on Facebook’s upcoming cryptocurrency Libra have focused on it being a cryptocurrency, albeit a rather centralized and non-permissionless in contrast to Bitcoin.

Some have even argued that Libra brings nothing new to the table. For example, Aleksi Grym, the notoriously cryptodenying economist at The Bank of Finland — which is the fourth oldest central bank in the world — is fierce in his opposition to Libra:

In Finnish newspaper interviews, portrayed by media as an expert on digital money, Mr. Grym has reiterated several times that in addition to not being anything new, in his opinion Libra…

Image for post
Image for post
Denarium physical Bitcoins covering some already obsolete fiat bills. Photo courtesy of Denarium.com.

The inevitable failure of central banking will deal a fatal blow to fractional reserve banking. At the same time, cryptocurrencies — and particularly Bitcoin — are on the rise and could be given the occasion to replace the fiat currencies. The real question is whether the adoption rate will be high enough when the time comes. That’s where we can make a difference.

Now, as central bankers from Washington to Frankfurt are beginning to backpedal their plans to hike interest rates and are raising voices to cut the rates instead, the near-term once again looks like more easy money to the stock market and more sleepless nights for those who understand where all of this is heading.

There is serious talk between the central bankers and their advisers about “extending the business cycle”, which translates to even more aggressively piling on the already bloated central bank balance sheets in order to artificially maintain the economic boom in the fear of any significant downturn…

Image for post
Image for post
A soon to be obsolete hall of governance. Photo [cropped] by Michael D Beckwith on Unsplash.

Automation, AI and Cryptos are making Politics obsolete

As 2020 draws closer and the typical US presidential bid goes into hundreds of millions of dollars, you might think being a politician is cooler than ever. In truth — thanks to technological advances — we are about to witness the death throes of politics altogether.

Politicians and bureaucrats are the most powerful people in the world, alongside various dictators. They all will be driven out of power relatively soon, but by evolution rather than revolution. However, in spite of all the science fiction novels, their replacement will not be a technocratic Grand Artificial Intelligence making everyone’s decisions for them, but finally, everyone making their own decisions, empowered by a completely unprecedented increase in productivity.

A (very) brief history of the state

Over the millennia, ever since people started forming clans and tribes ruled by chieftains, the technologies for governance have evolved just like every other field of technology.

Various different forms of…

Image for post
Image for post
In the future we can hang out in the nature all day without ever having to get a job.

Many fear losing their jobs as automation advances. Others claim that technological progress will create entirely new jobs to replace the obsoleted careers. Activists and politicians advocate universal basic income to provide for those that can’t get employed as the need for human labor becomes more scarce. They are all wrong.

All jobs will be lost. That’s a good thing.

What else is the history of technological progress than that of people wanting to (eventually) do less work?

Since the dawn of the human race, clever individuals have gone to exhausting lengths to find ways around whatever tedious tasks they had to do just to survive. …

Pasi J. Matilainen

I am working in the technology sector and a firm believer in the potential of automation and cryptocurrencies as the liberators of humankind.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store