Thank you May 10, 2023, it seems that today i got to deliver another good message to my employees and hope they will do great and have value in what they do. I feel like work for them is a step to go thru life and achieve their dreams. While i am grateful that everyone should feel that way we should all aim to be better and help one another. as the last blog i have written about how a group of few tries undermine the whole. I have been watching those digital currency and trying to understand how Block chain works. It boils down to simple understanding of trust and usage of a certain Currency. As my simple understanding of a currency as more people uses a certain currency the value of such will increase. As simple economics says that resources are finite and have operating expenses to get them. So lets do simple way how the world should use digital currency. As government, do need to have to power to control the currency as issuing more or doing others. The real problem is monitoring the usage of a certain currency. Currently as the currency valued when the currency could be used as an exchange to other goods. China proposing a different use of reserve currency and the middle east pushing gold and oil as standard bearer we are now in the situation that the USD or the Government who manage the USD is not being given trust as they continue to print the currency like Zimbabwe.
If they could manage to Convert the whole world in Digital currency, certain freedom should be promised to the whole world. As currency is the means of exchange, no government is allowed to block and hold any person's digital currency, all Digital currency is insured and will be replenished by the government managing it. Lastly in an event of block out there should be a rule in which how the digital currency should be monitored when there is internet.
With those freedom of exchange rules, we should eget to a certain technicalities that we should apply, resources currency - Gold, Oil ,and other rare minerals, everything of that Calibre should be listed on the block chain, all Money supply at current launch of a certain currency is the start of the government holding of the currency. This start for example is 100 then with 100 gold. we can derive the value of that currency to get gold is 1:1. Now we should add the value system to it. The value of a certain currency is base on number of transactions that each type of currency is being exchange, for example if the fiat currency is exchange 1Million times then there should be a multiplier in which the value of that currency is the economy and we can derive the value of exchange from the base x multiplier. then the currency Value so if the currency amount transacted total is 1Billion then x the million times it was exchange we can derive the value of the currency vs the other currency. Then ofcourse we should do a denominator to reduce the calculation for the economy value. So example country a have issued 1000 pcs of fiat coin, and recorded 10 transactions , with a total value of 5000. then we can value the economy to 50000. vs the other country B which issued 1000pcs of fiat coin, recorded 5 transactions with a total value of 35000, then we can derive the exchange rate of the 2 currency against each other.
Government should also earn from each trasaction that will be the tax rate, it will also add to the value of the currency and economy. This way each counrty cant just value their currency to the value they prefer or print freely as they want. it will have a ripple effect. Then we can also allow the government a certain value in which how much money supply they can influx thru the economy as they want 2% growth hence if the economy trasacted a 2% growth they can add 2% more of the money supply per year if they prefer, so 1000 fiat 2% will be 20, then the money supply is 1020 now. They can use the added money for infrastructure to add to the economy. Ofcourse as the economy grows and the money value trasaction grows bigger, the resource currecy have a vurning mechanisim as it is being used to the economy and create more goods. the trasactions and amount will be the GDP growth and as the money fiat keeps on increasing the resource will be consume and the supply is base on production and also the trasaction and supply left. The value of the resource currency will be determined and each currency can freely trade with each other.
That way if ever a certain government tries to manipulate a certain block chain, they will not be able to cuase they need 90% of the whole world to change the block chain to fit their needs. This will full proof the value of currencies. taxes should not be on income but in usage of the currency. each transaction the receiver will be deducted a certain tax rate or usage fee this way the givernment have their tax and does not need to monitor their citizens. It will be automated and everything is digitalize. The banks serve as intermediaries so that the servers will not be busted and safeguard from hackers.
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