A parable about a central bank

Business experience doesn’t qualify you to be the chairman of the fed

Why do I even have to say that? Being a successful entrepreneur doesn’t qualify you to be the chairperson of a central bank. Have you ever been asked to step up and work for the Fed? Before you decided to an ICO, did you ever, in your entire life, think about fiscal policy? Did you at least read a book about setting fiscal policy? If not, it could possibly be that you aren’t qualified to set fiscal policy. Ask your tokenomics consulting company or expert what exactly qualifies them to understand how to set fiscal policy for your token. Ask them what they did before they worked in the cryptocurrency space. If it isn’t in the government regulatory field or as a professor of economics, guess what? They aren’t qualified, either.

What you’re getting into: the short version

If you are controlling money supply, you are a central bank. Central banks have a certain history, and it’s pretty simple. When the economy is growing, central banks don’t have to do much to control the circulation of coins. When the economy is shrinking, the currency collapses unless the central bank floats it.

It won’t grow in value because supply is limited

Limited supply does not CAUSE high value. Limited supply is just limited supply. There’s a limited supply of toe fungus. It’s very difficult to get in dry climates where people wear open-toed shoes. Yet, you don’t value toe fungus, so even if the supply got even more limited, you wouldn’t buy it.

So why do people value Bitcoin?

Guess what? Bitcoin’s already been done. But I’ll answer your question anyway.

Wanna hear something scary?

The scary thing is that, unlike Vitalik, I have not figured out a system in which my job does not involve setting fiscal policy. I speak to 3 to 5 people a day about their tokenomics, or, in other words, fiscal policy. Some of these people I won’t even consider taking as clients, because they don’t have a case. I am fortunate enough to convince at least half of them to either back down or consider a totally different model.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
RebeccaRachmany

RebeccaRachmany

Founder, IwriteICOwhitepapers.com and DAOLeadership.com. Author: "So you've got a DAO: Leadership for the 21st century"