Explanation of how economy expands from bitcoin perspective (India and America)
Explanation of how economy expands from bitcoin perspective.
In bitcoin system, the amount of money in the system is measured by all the spendable money available in various addresses.
New money (bitcoin) is introduced in to the system as fees for bitcoin miners.
https://www.bitcoinmining.com/bitcoin-mining-fees/
Once the bitcoin economy expands, insignificant mining fees is paid by network to miner. Most of the fees is paid by users of bitcoin.
Note:-
Initially the bitcoin network was paying 50bitcoin/block, then 25bitcoin/block, gradually reduces to 1 bitcoin/block etc
The fees paid by users of bitcoin will increase to sustain the business of mining.
Compare the above principles of bitcoin economy expansion to USA economy and Indian economy expansion.
American economy
In USA economy, the Government encouraged innovators, value creators(businesses) to create assets in the economy to make it rich. More and more rich services became available to americans.
The life style improved. The Federal reserve kept giving loans to banks to lend to value creators. The value creators created assets that are self sufficient, earn money themselves.
Example:-
Asset-1, provides 20% return on investment.
Asset-2, provides 80% return on investment.
etc
All the businesses(assets) created in USA economy are able to make money by them selves.
Now Federal reserve does not need to print money and lend money to bankers any more.
The tax collected by businesses and fees paid by businesses is sufficient to sustain the economy.
(Note this is similar to bitcoin economy)
In Indian economy
In India the RBI officials are government servants. They just know what they are trained to do. So they just follow processes.They don’t understand, how to take advantage of modern economic architecture for benefiting the society.
In such an environment, money changes from person to person without creating any assets. To understand see how wealth is created in nations.
In India even if assets are created, it is defective. So cumulatively wealth is not created in India. Since no asset is created when economy expands by RBI printing notes, the currency value keeps collapsing.
The Government and business people are busy making money without following principles of economics correctly. So no wealth/assets is created.
Also many people think making more money is sin. This is self defeating principle. (will explain more details in separate article)
Government leaders are more interested in creating trouble to businesses, people and politics. (They justify from point of view, money making is sin)
So indian economy is a unreliable market. So people invest only in areas where government interference does not effect their money. (ie) they invest in gold and real estate.
The Indian government and its leaders should take education themselves. Also give training to public on economics, to fully benefit from modern economic principles.
Every opportunity to expand the economy was missed by government and RBI officials. The government and RBI officials should grow-up (Not be just bothered about job security, promotion, tips). Then do what is good to Indian economy.
Risks and opportunities
When bitcoin will collapse
- Over printing of bitcoin or by reducing complexity of mining.
- More cheaper ways of blockchain coins are created, which is controlled by governments. (ie)Govt controls when to print coins.
When USA economy will collapse
- USA stops innovating.
- USA does not find new ways to create value to people.
- People are suffocated by economic rules, encroaching on freedom of existence.
When Indian economy will expand.
- People start creating meaningful assets for the money they receive.
- People innovate, understand, adjust to needs of society.
- People understand how to communicate with each other meaningfully.
Summary
In american economy the government and its officers are able to see the benefit country will gain by the job they do. In India, they don’t see it. The officers are blind or see only what is beneficial to them. (I can help here to realise by taking 1 day class)
Bitcoin managers ensure bitcoin value is protected. they have collective advantage by protecting. This is similar to how american government protects american economy. But in india, such a protection system does not exist. So indians are orphans without protection.
Reference
- http://www.jewishhistory.org/the-rothschilds/
- Gestalt Therapy by Dr.Perls,
- Games people play by Dr. Eric Berne
- How wealth is created in nations
(Wondering how psychology is related to economics. See below in question/answer section)
Common question/answers
- How rothschilds is related to article.
In above links you can see, Jews had responsibility to work between kings and subjects. Kings threatened money lenders(jews) to increase wealth by say 40% every year.
So Moneylenders threatened people to work and create assets useful to people.
When people worked and created assets, people became rich, money lender became rich, kingdom became rich. This is how america and europe became rich.
These money lenders later became banks in europe. They continued to be engines of economy in europe and america. In India the bankers work just like clerks. So nobody to drive economy in india.
This explains why india did not prosper, while america and europe prospered.
2. How psychology is related to economics.
Many religions prescribe beliefs, rules and procedures that limit asset creations and wealth creation. So new psychology was created by above psychologists to create new meaning to life, by devising techniques to remove unproductive beliefs, unproductive rules and procedures from individuals life.
This became modern psychiatry. Now people have to just follow beliefs, rules, procedures as defined by laws of nation. This created a wider opportunity to create wealth and prosperity.