{"id":14896,"date":"2020-03-30T21:45:13","date_gmt":"2020-03-30T21:45:13","guid":{"rendered":"http:\/\/mediashower.com\/blog\/?p=14896"},"modified":"2020-03-30T21:49:03","modified_gmt":"2020-03-30T21:49:03","slug":"one-world-one-money","status":"publish","type":"post","link":"https:\/\/www.mediashower.com\/blog\/one-world-one-money\/","title":{"rendered":"One World, One Money"},"content":{"rendered":"

One money for one world.<\/p>\n

If the Coronavirus has taught us anything, it\u2019s that we\u2019re\u00a0one human species<\/a>. The virus doesn\u2019t see national boundaries. The virus doesn\u2019t see skin color or religion or socioeconomic class. The virus sees\u00a0one human host<\/strong>.<\/p>\n

To defeat the virus, we\u2019ve got to think like a virus.<\/p>\n

On a practical level, that means working together to #SlowTheSpread<\/a>\u00a0of COVID-19, so that our healthcare systems can treat more sick, more slowly. When we work together, we win.<\/p>\n

On a financial level, that means we\u2019ve got to fundamentally rethink how we do money. We\u2019ve got to do money as\u00a0one human species<\/strong>. Here\u2019s why.<\/p>\n

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$2 Trillion Hiding in the Couch Cushions<\/strong><\/h2>\n

The U.S. Senate recently passed a landmark\u00a0$2.2 trillion stimulus package<\/a>, which led me to wonder:\u00a0where did they find $2.2 trillion?\u00a0<\/em>Hiding in the couch cushions?<\/p>\n

The answer, of course, is that it will be created by \u201cprinting money,\u201d otherwise known as\u00a0quantitative easing<\/a>\u00a0(QE). The problem with printing money is that it makes money less valuable. Here\u2019s the diagram from my book\u00a0Blockchain For Everyone<\/em><\/a>, which is a simple way of visualizing it:<\/p>\n


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As the pie gets bigger, your slice of the pie gets relatively smaller.<\/p><\/div>
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In other words, if you own 10% of a pie beforehand, and the pie magically grows 10 times larger, you now only own 1% of the pie. (Economists will say this is a gross oversimplification, and they\u2019re right \u2014 but unlike their explanations, you\u2019ll remember \u201cMagic Pie<\/strong>.\u201d)<\/p>\n

Magic Pie happened a lot with early blockchain projects, when the founders decide to magically \u201cmint more coins\u201d (i.e., print money) which devalued everyone\u2019s investment. It\u2019s why we place such a premium on the \u201ctokenomics\u201d in our\u00a0Blockchain Investor Scorecard<\/a>.<\/p>\n

Look: people are out of work and need money to buy food. We need to do something, and Magic Pie is the best food we\u2019ve got right now.<\/p>\n

But there are other problems that run much deeper:\u00a0high levels of indebtedness<\/em>, and\u00a0extremely low interest rates<\/em>. Here\u2019s a tweet this week by a guy named Mikenson, which states the problem beautifully:<\/p>\n


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While economists will say this is a gross oversimplification (and they\u2019re right), you will definitely remember \u201cwhole economy full of broke bitches<\/strong>.\u201d<\/p>\n

In other words, these things have domino effects. If you\u2019ve seen\u00a0The Big Short<\/a>\u00a0(highly worth a re-watch during these times), you\u2019ll remember the crowds of people lined up to place the bet at the gambling table \u2014 or the Jenga tower that suddenly collapses. It\u2019s a global economy, and it\u2019s all connected.<\/p>\n


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