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by s_dev 2290 days ago
Liquidity is King.

Cash is filthy bacteria rags that are pure liquidity. Contactless and Cashless solutions are the future.

1 comments

Liquidity isn't everything. What makes USD bills any better than Hasbro dollars? Why are people trading dollars over the internet when they could be just trading packets, which are infinitely more available (liquid).

You're missing an important piece of the puzzle. People want to trade for something that they perceive to have more value than the thing they are trading. This can't work if you have an infinite dollar printer (or magic numbers somewhere on the internet) because the money will be perceived as worthless (or will become worthless in the not so distant future).

The future is being able to trade something which is perceived as holding (or accruing) value which can't be arbitrarily reduced by policy-makers, and also is highly liquid, difficult to forge, easy to verify, low-cost to transact, and can be used as payment for most services. Any guesses as to what this might be?