Prior to this merge at least theoretically you could have a consortium of people collaborate to combat centralization.
Now, all big players have to do to print money is nothing. It is now actually impossible to ever overcome the mechanisms.
My young son the other day said “I’ll get money from the store and buy what ever I want”.
I explained you had to exchange work for money. So you can work for the store, then they give you money to buy things.
Then I thought about how banks or large lenders just give people money. They magically create a loan, which people have to pay back with interest. The bank assesses the risk they won’t and profit they want and that’s the interest rate. The FED works the same way, just handing out money. Those people don’t work for their money. They just get free labor for controlling the money.
Here it’s like the store printing money at 5-8% a year or what ever just for having money in the bank. They can then spend 4% or what ever of that and still always guarantee growth in their money supply. It’s the exact same.
Theoretically, someone can make something the store finds valuable enough in the real world to trade their reserves. However, they’d have to find it more valuable than the static growth rate.
The difference in POW is that anyone can enter the market. And large lenders won’t have an advantage. Sure they could PAY for more processing power, but they have no advantage of printing money over the next guy.
Now, all big players have to do to print money is nothing. It is now actually impossible to ever overcome the mechanisms.
My young son the other day said “I’ll get money from the store and buy what ever I want”.
I explained you had to exchange work for money. So you can work for the store, then they give you money to buy things.
Then I thought about how banks or large lenders just give people money. They magically create a loan, which people have to pay back with interest. The bank assesses the risk they won’t and profit they want and that’s the interest rate. The FED works the same way, just handing out money. Those people don’t work for their money. They just get free labor for controlling the money.
Here it’s like the store printing money at 5-8% a year or what ever just for having money in the bank. They can then spend 4% or what ever of that and still always guarantee growth in their money supply. It’s the exact same.
Theoretically, someone can make something the store finds valuable enough in the real world to trade their reserves. However, they’d have to find it more valuable than the static growth rate.
The difference in POW is that anyone can enter the market. And large lenders won’t have an advantage. Sure they could PAY for more processing power, but they have no advantage of printing money over the next guy.