DrDMD Commentary: Why the World Bank hates Gold, Diamond coins (DMD) and Bitcoins (BTC)

DrDMD Commentary

We just saw a piece on the cointelegraph where the world bank president claims that everyone is excited about block-chain, just not Bitcoin. But why is that so? The article is descriptive but not analyzing. So let's take a shot at trying to give an answer as to why.

Limited supply - vs ...

To continue, we need a little background knowledge. Limited supply economies are inherently deflationary, meaning that economies where the amount of money (backed by for instance gold) in circulation is limited, are deflationary by their mere existence. Banks, national banks and central banks make a living by lending out money. If you lend out money in deflationary system, you will ending up making less and less money, the chances are even that your lenders might never be able to pay back their debts. Imagine that you went to the bank in limited-supply-land = deflation-land and the bank agreed to borrow you 100 USD and you earn like 10 USD/year, it means that within and around 10 years, you can pay back that loan if everything goes according to plan. The problem with deflation is that the value of money increases yearly because of the limited supply if the economy grows. This means that you borrowed 100 USD, and if the economy grew by 10%, your salary has to go DOWN to 9 USD/year next year. It would get harder and harder year-on-year to repay said loan.

...unlimited supply economy

The opposite holds true in a system where nothing backs money and money can be printed, issued without a problem. If you went to the bank in an unlimited-supply-land (like the one we're living in now) and borrowed 100 USD and your salary would be 10 USD, if the economy grew by 10%, your salary would be say 11 USD/year next year. You could faster be in position to repay your debt to the bank, and money through inflation would get less and less worth every year, making life easier and easier.

Good vs bad?

It's not about which system - inflationary or deflationary - is good or bad... it's about how we can capitalize the most, understanding the above described? Where do you park your hard earned money? Is it into something that is inflationary and looses value year by year, or into something that has a limited supply and is deflationary, INCREASING in value year by year?

Bottom line

Economic growth is all that matters to governments, banks, central banks, the World Bank and other entities wielding power. In the end of the day, they want taxes and debts to be payed. They are not interested in economic systems with a limited supply of money because of relative instability and thereby risc of getting less taxes/debt-collection. Governments regard said systems as not being as effective for economic growth as inflationary systems. Limited supply currencies backed by gold, or cryptocurrencies like Diamond coins (DMD), bitcoins (BTC) or any other altcoin with a cap on tokens are therefore regarded as "bad" by the World bank and friends.

So Banks need inflation like a fire needs fuel. This is why the World Bank looooves block-chain tech, so that they can issue their cryptofiats with unlimited supply...just not DMD, BTC and co...

The powers that be not liking DMD or BTC, doesn't mean that you shouldn't buy and hold these potentially extremely valuable e-assets. Look at gold, it holds, and has historically held it's ground perfectly well against fiat. So will DMD and BTC vs cryptofiats. Keeping a good amount of DMD and BTC, means holding pure gold in your portfolio in the future world e-economy.

Needless to say, I'm heavily invested in DMD coins so please do your research before drawing your own conclusions.
DrDMD

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