You should start with what does decentralized mean:
Decentralisation is the process by which the activities of an organization, particularly those regarding planning and decision making, are distributed or delegated away from a central, authoritative location or group.[1] Concepts of decentralization have been applied to group dynamics and management science in private businesses and organizations, political science, law and public administration, economics, money and technology.
From: https://en.wikipedia.org/wiki/Decentralization
Then you apply this concept to the Economy.
You distribute an Economy management to many different entities. Which one with their own rules and controls.
Just as decentralized Stellar usage with banks where you will be able to send your stellar from bank to bank and trade it anywhere to fiat without the issue with fees from the banks and delays between transactions.
That's basically the same for decentralization on economy. There will not be such waitings for your money to be on your hand or ready for you to use it online.
Topic: Decentralized Economy: What is it for? - page 4. (Read 1165 times)
Decentralized economy sounds like a buzzword - market economy is already decentralized, as opposed to centralized economy known as planned economy, which was practiced in countries like Soviet Union and Maoist China. People like to add the word "decentralized" to anything these days, especially in crypto sphere, so it's important to always have clear definitions.
Just because we have regulations and national banks, doesn't mean that the economy is centralized, governments don't make any demands to companies telling them what to produce and in what quantities.
"What is it for?
The decentralized economy emerges as part of a critique of existing market-economy systems. Virtual currencies are making financial decentralization possible, which undoubtedly influences the economy.
The decentralized economy emerges as part of a critique of existing market-economy systems. Virtual currencies are making financial decentralization possible, which undoubtedly influences the economy.
Just because we have regulations and national banks, doesn't mean that the economy is centralized, governments don't make any demands to companies telling them what to produce and in what quantities.
Guys, I think we should clearly distinguish between the guilt of the state, the banking system and the people. Why are there debts that people have to pay to the bank? Who forced to take a person in debt? The fact is that in many countries, people are accustomed to not refuse anything in themselves and buy cars, houses at home, and live with bank loans in general. Of course, you have to pay for everything and give the interest to which everyone agreed. The banking system will never give their money. In fact, the banking system has never had its money, because it is all the contributions of other users, but nevertheless the fact remains that no one forces a person to go to the bank and take a loan.
Honestly the main reason is not to have a federal bank that will ruin it by doing something silly that will help the rich and screw the poor.
So far in all worlds economy whenever something bad happens they save the rich people first with the idea that poor people all have money in the bank and if a bank collapses then the economy will as well but whenever they give the money the banks do not use it to help recover the people but help themselves with bonuses and so forth whereas people keep getting screwed and getting their houses and cars taken from them.
In 2008 if the newly printed 800 billion dollars were used to pay everyone's debt so that nobody would have debt and banks would get the money then we would still have banks recovering and also people at ease with no debt but they paid it to banks to recover whereas people also had to pay their debts to banks as well, most of which couldn't so banks got paid twice both by the government plus people who could pay or give their houses and what not. Decentralized economy stops all of this discrimination against the poor.
So far in all worlds economy whenever something bad happens they save the rich people first with the idea that poor people all have money in the bank and if a bank collapses then the economy will as well but whenever they give the money the banks do not use it to help recover the people but help themselves with bonuses and so forth whereas people keep getting screwed and getting their houses and cars taken from them.
In 2008 if the newly printed 800 billion dollars were used to pay everyone's debt so that nobody would have debt and banks would get the money then we would still have banks recovering and also people at ease with no debt but they paid it to banks to recover whereas people also had to pay their debts to banks as well, most of which couldn't so banks got paid twice both by the government plus people who could pay or give their houses and what not. Decentralized economy stops all of this discrimination against the poor.
Decentralized economy? It is just like you having a nation without law, I am not sure decentralization will ever work for economy, it is just best to stick with decentralized currency which will in turn help any economy than to talk of decentralizing economy. There cannot be decentralization without blockchain, and when it comes to blockchain, it requires the use of code to control things or make decentralization happen.
What code will be written to generally decentralize the economy or give people the full power to do whatever they like as regards economy without the government interference or control? Let’s not go this way at all.
I think a lot of people think everything can be decentralized, and everything should be decentralized. It's not possible to blame them either, since even projects in crypto and their developers all think the same things. This forum for example is best centralized. I can't imagine what chaos would take place if we tell the mods and admins the forum wants to self regulate.
Now imagine if the same happened to some economies. I believe developed economies in some countries would do well but for corrupt ones the countries would just collapse.
I do not know what should happen that the states would accept a decentralized economy. So far, everything is moving towards adopting a centralized crypto economy controlled by states.
Op you are right and that is why governments and financial institutions are fighting the existence of cryptocurrency and blockchain in general. I am in full support of blockchain technology because I see it as the only way to break the power of those powerful men and women that has been controlling the world economy and powers is being giving back to society through decentralized systems.
I am searching on the topic of decentralized economy and I came up with this piece which is a good one for me. I am quoting it here below:
"What is it for?
The decentralized economy emerges as part of a critique of existing market-economy systems. Virtual currencies are making financial decentralization possible, which undoubtedly influences the economy. Some of its professionals say that this type of economy is used to reduce costs and increase efficiency, so that there are fewer surpluses and shortages of products so that people can be free to choose what to produce and consume, take advantage of the time and knowledge, etc.
Of course, it is not the same to speak of a decentralized economy than of cryptocurrencies, but we do dare to place them at a close level for their contribution to it. Spain, Switzerland or the United States are examples of such systems, and it must be said that virtual currencies have already reached them. As a result, we are witnessing the reaction of central banks, who still show a strong reluctance to their use and proliferation."
Source.
Are we heading to the creation of a decentralized economy (the one controlled by the people themselves) but still within and a part of the bigger centralized economy (the one controlled by the government)?
What code will be written to generally decentralize the economy or give people the full power to do whatever they like as regards economy without the government interference or control? Let’s not go this way at all.
In crypto decentralized ways rich are forced to share with the poor otherwise there is no more bitcoins and the poor will pay premium to get it and that will result with bad situation for whales.
Wow, plot twist.
Decentralization means FORCING people!
Who could have imagined this! /sarcasm
Listen up, all your socialist dreams will never come true, never.
Decentralization and a free economy will always be the opposite of your socialist dreams, those that have coins will be rich the ones that can't afford them will not be and will be left poor. Without taxes there will be no social programs, no social welfare, no nothing, the poor will be hit a thousand times worse than the rich.
~
Yeah, decentralized economy is pretty much like communism, it seems to be amazing in theory but then reality hits you hard. We are not ready for a decentralized economy, humans are too greedy for that, maybe in the future when only AI is left.
If you're referring to how utopic it is to be ut in place yeah, it's just as communism or socialism. Both failed everywhere because we weren't able to get the real utopian society, or at least those are the excuses their fans blab all over the place.
Now, talking about how it will work it will be more like a libertarian movement but just as the others it will likely turn in a few years in a mad max world.
Just like in the name decentralized means it doesn't have a central government body that controls the money and forces the participants to deal with the issues at hand without putting the responsibility in someones hands. I am not saying that is better but it is certainly different.
For example, in the normal fiat world we live in right now the rich people get richer and poor people get poorer, if we do not print more money to give them both what will happen? Poor will eventually have nothing and the rich will have everything and poor will riot or die. That is why they print money and make the economy go forever. In crypto decentralized ways rich are forced to share with the poor otherwise there is no more bitcoins and the poor will pay premium to get it and that will result with bad situation for whales.
For example, in the normal fiat world we live in right now the rich people get richer and poor people get poorer, if we do not print more money to give them both what will happen? Poor will eventually have nothing and the rich will have everything and poor will riot or die. That is why they print money and make the economy go forever. In crypto decentralized ways rich are forced to share with the poor otherwise there is no more bitcoins and the poor will pay premium to get it and that will result with bad situation for whales.
Of course, it is not the same to speak of a decentralized economy than of cryptocurrencies, but we do dare to place them at a close level for their contribution to it. Spain, Switzerland or the United States are examples of such systems, and it must be said that virtual currencies have already reached them.
Lols,
Last time I checked Spain, Switzerland and the United States were not in the stone age.
Decentralized economy?
Go in the wilderness and start trading with bears and squirrels if you want a decentralized economy.
When somebody will start selling counterfeit expired milk with the same package and labels as your farm but you have nobody to turn to because there's no authority left you're going to regret the tyranny of the centralized system.
With all the blockchain hype all people only speak about decentralization, like is a miracle cure and pointing at it like being a natural solution.
Then start with your own body, I'm pretty sure the legs and arms are tired to only obey the brain!
Yeah, decentralized economy is pretty much like communism, it seems to be amazing in theory but then reality hits you hard. We are not ready for a decentralized economy, humans are too greedy for that, maybe in the future when only AI is left.
Of course, it is not the same to speak of a decentralized economy than of cryptocurrencies, but we do dare to place them at a close level for their contribution to it. Spain, Switzerland or the United States are examples of such systems, and it must be said that virtual currencies have already reached them.
Lols,
Last time I checked Spain, Switzerland and the United States were not in the stone age.
Decentralized economy?
Go in the wilderness and start trading with bears and squirrels if you want a decentralized economy.
When somebody will start selling counterfeit expired milk with the same package and labels as your farm but you have nobody to turn to because there's no authority left you're going to regret the tyranny of the centralized system.
With all the blockchain hype all people only speak about decentralization, like is a miracle cure and pointing at it like being a natural solution.
Then start with your own body, I'm pretty sure the legs and arms are tired to only obey the brain!
I am searching on the topic of decentralized economy and I came up with this piece which is a good one for me. I am quoting it here below:
"What is it for?
The decentralized economy emerges as part of a critique of existing market-economy systems. Virtual currencies are making financial decentralization possible, which undoubtedly influences the economy. Some of its professionals say that this type of economy is used to reduce costs and increase efficiency, so that there are fewer surpluses and shortages of products so that people can be free to choose what to produce and consume, take advantage of the time and knowledge, etc.
Of course, it is not the same to speak of a decentralized economy than of cryptocurrencies, but we do dare to place them at a close level for their contribution to it. Spain, Switzerland or the United States are examples of such systems, and it must be said that virtual currencies have already reached them. As a result, we are witnessing the reaction of central banks, who still show a strong reluctance to their use and proliferation."
Source.
Are we heading to the creation of a decentralized economy (the one controlled by the people themselves) but still within and a part of the bigger centralized economy (the one controlled by the government)?
We might be. but with the resistance coming from the banks and governments it seems impossible and if it happens
it'll be considered(I might be wrong) as a sub economy and government will probably still enforce their authority over it.
I am searching on the topic of decentralized economy and I came up with this piece which is a good one for me. I am quoting it here below:
"What is it for?
The decentralized economy emerges as part of a critique of existing market-economy systems. Virtual currencies are making financial decentralization possible, which undoubtedly influences the economy. Some of its professionals say that this type of economy is used to reduce costs and increase efficiency, so that there are fewer surpluses and shortages of products so that people can be free to choose what to produce and consume, take advantage of the time and knowledge, etc.
Of course, it is not the same to speak of a decentralized economy than of cryptocurrencies, but we do dare to place them at a close level for their contribution to it. Spain, Switzerland or the United States are examples of such systems, and it must be said that virtual currencies have already reached them. As a result, we are witnessing the reaction of central banks, who still show a strong reluctance to their use and proliferation."
Source.
Are we heading to the creation of a decentralized economy (the one controlled by the people themselves) but still within and a part of the bigger centralized economy (the one controlled by the government)?
We might be. but with the resistance coming from the banks and governments it seems impossible and if it happens
it'll be considered(I might be wrong) as a sub economy and government will probably still enforce their authority over it.
I think that there should be a clear distinction made between a decentralised economy, and a decentralised currency supply. The latter is what bitcoin is trying to achieve, and most other cryptocurrencies as well. Decentralising the entire economy is still unfathomable at this point, and it is unclear whether this is actually going to be practical or required. In the future, though, I think that what will happen is that centralised currencies will run in parallel with decentralised alternatives, to a greater extent than what is already happening. More people will most likely move their assets into decentralised, longer term store of values, as opposed to keeping them in fiat. However, the traditional financial institutions, central banks, etc. aren't just going to disappear off the face of the earth.
I have no choice but to totally agree with your assessment of things here. While we are dreaming of a decentralized economy, we have to accept that we are still living in the real world. The most likely to happen is the co-existence of the the current system we have and that one produced out of the use of the decentralized cryptocurrencies. Well, while there are frictions in between I am seeing that eventually things can be threshed out for good with many compromises along the way (whether we like it not we live in the world where compromises are needed to accomplish changes).
Spain in that list? HAHA, it took me months to even be able to pay my taxes in crypto here, the law is not clear at all in regards to cryptocurrencies, I mean, it's certainly not banned or anything like that but it's also not integrated whatsoever.
Why is it not clear? Countries don't specifically have to adjust their taxation rules to crypto and mention the asset by name. It technically doesn't even matter what it is that you buy into and sell, taxation applies whether you like it or not.
People quite often assume that just because crypto isn't legal or mentioned by name that they don't have to pay tax. That's false. It's dangerous as well, because when your government starts to ask your exchange for user information and the exchange hands it over to them, you'll be busted and forced to pay the tax you 'owe' them plus a hefty fine.
Governments haven't been very active on that front in the past, but that will change in the forthcoming years.
Of course you have to pay your taxes but it seems extremely confusing when you have to do it with cryptos, for instance for our signature campaigns, how are we going to prove that we got the money from them and is it even legal to participate in signature campaigns without some sort of contract?
I strongly agree that crypto is recognized and for some things it has been admitted, that taxation issues are dangerous if we ignore them, the government at that stage will tax all crypto users according to what they have, maybe still need a lot of time or they don't taking this step is absolutely clear here everyone is playing safely don't let it create a problem that can cause all aspects of crypto to be destroyed.
People are tired of banks and government regulation and decentralized blockchain technology have changed things for the better. We're now free to make our own banks and to manage our assets without lots of conflicts.
However, there are still some parts where cryptocurrency couldn't take full control of because we still need to consider the government at some point.
However, there are still some parts where cryptocurrency couldn't take full control of because we still need to consider the government at some point.
Are we heading to the creation of a decentralized economy (the one controlled by the people themselves) but still within and a part of the bigger centralized economy (the one controlled by the government)?
Yes we are, I am very optimistic on that, but we cannot be fully decentralized since the government still has the power to regulate us.
To make it short, a decentralized economy regulated by the government, sounds better than the current system we are at.
Spain in that list? HAHA, it took me months to even be able to pay my taxes in crypto here, the law is not clear at all in regards to cryptocurrencies, I mean, it's certainly not banned or anything like that but it's also not integrated whatsoever.
Why is it not clear? Countries don't specifically have to adjust their taxation rules to crypto and mention the asset by name. It technically doesn't even matter what it is that you buy into and sell, taxation applies whether you like it or not.
People quite often assume that just because crypto isn't legal or mentioned by name that they don't have to pay tax. That's false. It's dangerous as well, because when your government starts to ask your exchange for user information and the exchange hands it over to them, you'll be busted and forced to pay the tax you 'owe' them plus a hefty fine.
Governments haven't been very active on that front in the past, but that will change in the forthcoming years.
Of course you have to pay your taxes but it seems extremely confusing when you have to do it with cryptos, for instance for our signature campaigns, how are we going to prove that we got the money from them and is it even legal to participate in signature campaigns without some sort of contract?
Spain in that list? HAHA, it took me months to even be able to pay my taxes in crypto here, the law is not clear at all in regards to cryptocurrencies, I mean, it's certainly not banned or anything like that but it's also not integrated whatsoever.
Why is it not clear? Countries don't specifically have to adjust their taxation rules to crypto and mention the asset by name. It technically doesn't even matter what it is that you buy into and sell, taxation applies whether you like it or not.
People quite often assume that just because crypto isn't legal or mentioned by name that they don't have to pay tax. That's false. It's dangerous as well, because when your government starts to ask your exchange for user information and the exchange hands it over to them, you'll be busted and forced to pay the tax you 'owe' them plus a hefty fine.
Governments haven't been very active on that front in the past, but that will change in the forthcoming years.
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