Technological Deflation and Cryptocurrency
Technology, by default, is deflationary. This could be a massive problem in a technological age.
In this video I discuss how we are already seeing an absense of omney in the system without the massive moves forward that we will likely see due to technology. Since we are not likely going to see this corrected through the existing system, cryptocurrency has the opportunity to resolve the issue. Here is where digital assets could well be the solution to this.
▶️ 3Speak
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This is an interesting viewpoint. I am also one of the people that used to think that technology usually creates more jobs. But throughout the years, it was also the reason why some jobs have been phased out; like factory workers and automation. We are now seeing it again with Generative AI endangering jobs like Writers, Programmers, and artists. I can only see it expanding more and more because of how quickly these AI can learn. If Crypto can help the people, then I hope we get mass adoption sooner rather than later.
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Summary:
In this video, the speaker discusses the concept of technological deflation and its impact on the economy. He explains how technological advancements lead to deflation, impacting prices, jobs, business structures, and the monetary system. The speaker highlights the inadequacies of the current financial system, especially in terms of money creation and lending practices. He emphasizes the potential role of cryptocurrency in addressing these challenges by offering elasticity in money supply expansion and decentralization in funding mechanisms. Cryptocurrency is presented as a solution to combat technological deflation and reduce financial extraction, allowing for more funds available for productive purposes.
Detailed Article:
The video delves into the intricate relationship between technology, deflation, and the cryptocurrency landscape. The speaker starts by elucidating the deflationary nature of technology, stating that advancements drive prices down and eliminate jobs, leading to significant changes in society that are often unforeseen. He emphasizes that the technological age we are in will have profound economic impacts, affecting jobs, businesses, and the overall monetary system.
The discussion progresses to challenge the conventional understanding of the monetary system, highlighting the existence of an offshore banking system and Eurodollar system that operate independently of central banks. The speaker argues that the traditional monetary system is inadequate and inefficient, citing examples like the Great Financial Crisis to underscore its shortcomings in addressing economic challenges.
A critical analysis of central bank reserves and their limited impact on the broader economy is provided, indicating how the current system struggles to facilitate economic expansion due to constraints and inefficiencies. This leads to a discussion on the role of commercial banks, especially in the context of lending practices and the overall economic environment.
The speaker then transitions to advocate for the potential of cryptocurrency in addressing these systemic issues. Cryptocurrency is portrayed as offering a solution to the limited money supply expansion and centralized funding mechanisms prevalent in the traditional financial system. The elasticity and decentralization of cryptocurrency are posited as key strengths that can empower communities and projects to generate and direct funds more effectively.
Furthermore, the speaker articulates a vision where cryptocurrency enables smaller groups or communities to collaborate, access funding, and drive economic growth in a more decentralized and efficient manner. This contrasts with the complex and fragmented networks present in the current financial system, with the speaker underscoring how cryptocurrency can streamline processes and reduce financial extraction by intermediaries.
In conclusion, the video expresses optimism about the transformative potential of cryptocurrency in mitigating the impacts of technological deflation and enhancing economic productivity. By simplifying financial networks, reducing intermediaries, and empowering communities to fund projects effectively, cryptocurrency emerges as a promising alternative to the traditional monetary system.
Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.