It's similar to the way the stock market works. Stock shares are also "instruments of value" - think of a share as a dollar. What happens when a stock becomes a bad risk, and folks who don't have it don't want it, and folks that DO have it try to get rid of it? The value of that stock plummets.
Think of "petrodollars" - what happens when most oil producing nations suddenly stop accepting dollars as payment for oil? The value of the dollar drops like a rock. That is how Russia and China are currently trying to wreck the US economy - by convincing folks to no longer accept dollars as payment.
With my scheme, the main weak point is storing and moving your "stuff" that you have traded in your crypto for. "Stuff" is bulkier, and needs more storage space - some more, some less, depending on what the items are.
Drug cartels, for example, will have a hard time with it - not only would they have to smuggle their drugs IN,they would also have to smuggle their "payments" OUT. For that reason, I predict that a "parallel" economy will develop, so that criminal types can move their "wealth" around outside of the primary, trackable, system. Folks just have to watch them to see how they do it, and either use that system, or develop their own parallel systems for moving value.
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Think of "petrodollars" - what happens when most oil producing nations suddenly stop accepting dollars as payment for oil? The value of the dollar drops like a rock. That is how Russia and China are currently trying to wreck the US economy - by convincing folks to no longer accept dollars as payment.
With my scheme, the main weak point is storing and moving your "stuff" that you have traded in your crypto for. "Stuff" is bulkier, and needs more storage space - some more, some less, depending on what the items are.
Drug cartels, for example, will have a hard time with it - not only would they have to smuggle their drugs IN,they would also have to smuggle their "payments" OUT. For that reason, I predict that a "parallel" economy will develop, so that criminal types can move their "wealth" around outside of the primary, trackable, system. Folks just have to watch them to see how they do it, and either use that system, or develop their own parallel systems for moving value.
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