Do I have the following correct in this hypothetical future?
- Bitcoin is the medium of exchange and store of value in a country.
- The vast majority of people just save money since there is no more government-induced inflation. Prices of all goods are relatively stable except in natural disaster situations and supply chain fluctuations.
- The financial investment industry has shrunk exponentially. There are still people who are investors and provide this expertise for a fee or commission.
- It is extremely transparent where each Satoshi of your taxes go to. Public entitlement programs are very limited and completely funded as the money supply is almost 100% predictable now. Publicly funded pensions are almost unheard of. There are a lot more private companies providing what were once largely publicly funded services such as public safety.
- Banks still exist but their business model is more about pooling investor funds and providing a Bitcoin custody service for the people who don't feel comfortable holding their own coins. Bitcoin custodial services are a big deal as personal home robberies are now fairly commonplace. Banks are not required to have a 1:1 reserve ratio, but customers understand that if a bank does not then they may lose their money if something happens to the bank. Banks are nowhere near "too big to fail" anymore.
- People can choose to invest their Bitcoin into various projects to try to multiply their wealth and they understand that they can lose their money if the project fails, end of story.
- There is a free market for interest rates. Loans are largely sourced from private lenders and/or banks, but there is no more central bank nor a national interest rate decided by a small group of people.
- There is still a stock market because companies still have the freedom to try to publicly fund their business ideas, but it's no longer the behemoth that it once was as money is hard money and isn't as easy to come by as it once was.
Are their big holes in this economic model? I'm sure I'm missing important parts as it's impossible to summarize an economy. Feel free to add your own thoughts and ideas. I enjoy discussing these kinds of things. Thanks!
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