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0 sats \ 3 replies \ @Solomonsatoshi 4 Feb \ on: Fama: Bitcoin is Dead (Promarket/Capitalisn't) econ
'Eugene Fama has a long-term consulting arrangement with Dimensional Fund Advisors.'
He made his name/career theorising upon fiat monetary systems and principles- Bitcoin does present an asymmetric alternative to fiat money and while it does demonstrate volatility is also has provided SoV- incredible SoV.
The fact that Bitcoins use as a MoE has been hugely if slyly obstructed by the legacy fiat operators is overlooked by Fama. How he can call himself a Libertarian while ignoring extensive and explicit money market obstruction by the fiat money operators is a mystery.
Fiat money is an explicitly rigged market with the price and issuance dictated by central banks. It is a government imposed monopoly within its respective jurisdictions.
The fiat operators have slyly and effectively obstructed Bitcoins ability to be used in competition with fiat as follows-
The combination of tax reporting obligations making use of Bitcoin as a MoE effectively impractical and the threat by banks to withdraw banking to businesses who dare offer Bitcoin as a MoE results in significant obstruction of Bitcoin as a MoE.
It is true that not being widely used as a MoE is a problem, and that the growing accumulation of Bitcoin under institutional custody further degrades Bitcoins potential for use as a MoE, but this does not make Bitcoins demise certain.
However even if only or largely used as a very liquid SoV Bitcoin has proven to be in high demand.
It seems very unlikely that fiat debasement will cease anytime soon so the logic for people to hold Bitcoin remains.
"The combination of tax reporting obligations making use of Bitcoin as a MoE effectively impractical..."
I never understood this
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Yes, like when I zap your comment 7 sats - am I going to record that payment and calculate the tax due based on the cost price of the sats I zapped you?
No - I am not because it would be practically impossible.
The record keeping required to comply is absurdly onerous and not justifiable.
By arbitrarily designating Bitcoin as a commodity liable for tax on capital gains they have slyly made it impractical for any law abiding citizens to use Bitcoin as a MoE.
In general I am law abiding, and in general prepared to pay taxes due - but in the case of LN/Bitcoin consumer payments the compliance requirements are simply unreasonable and so, I refuse to comply.
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I do the same. I believe that eventually, especially with politicians like Mr Trump who are hugely anti-government, people won't care and the benefits to 'using' Bitcoin on Lightning will be so obvious, so overwhelming, and so profitable for businesses that people will use it anyway.
I believe that Lightning right now at least is not the issue. The issue is... well lack of education.
The commenters from major newspapers, even 'high-up' ones don't know anything about Bitcoin except that it's like memecoins and because of that they're not ready for anything else, especially something like Lightning. They generally believe that Bitcoin 'doesn't exist' really and how can you 'spend' that which doesn't exist...
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