Overnight, BTC continued to consolidate above $61k. In the May 14th article “Miners Face Selling Pressure After Halving” in the Jiaolian Neican, it was mentioned that some foreign netizens have discovered some issues with the so-called Worldcoin, which was hotly discussed recently, such as severe inflation, internal manipulation, and the fact that Sam Altman, who was once associated with OpenAI/ChatGPT, publicly stated that he is no longer paying attention to the project. These issues have been analyzed in a series of articles in Jiaolian from mid-last year to early this year, so I won’t go into detail here.
The banner held by Worldcoin is unconditional distribution of money, known as the concept of Universal Basic Income (UBI). Unlike other blockchain projects that allow for anonymous usage, Worldcoin requires scanning of your iris to ensure that you are a living person. Once you have an active account, you can receive regular payments — of course, the currency you receive is Worldcoin’s token, not USD. However, you can sell the tokens on the secondary market and convert them into USD. If you’re wondering what happens if a person continues to receive money after they die, well, it can only be said that if you take it seriously, you lose.
With so many free-riders, who will support them? Relying on the grand plan of AI replacing human labor to support humanity is probably not reliable in the short term. By hoisting a big banner and creating such a large-scale operation, who benefits and who pays the price?
Currently, it seems that the project team and insiders who unlock the selling pressure will be the biggest beneficiaries. After all, they are the sickles that harvest the leeks. As for the “human flesh miners” who sell their personal biometric privacy (iris) in exchange for tokens, they are a large group of people who gain small benefits. The ones who pay for all of this are naturally the leeks who are moved by this concept and rush to buy Worldcoin on the secondary market!
The awakened leeks who know the truth always sing the same song after losing everything: Why am I always the one who gets hurt? What did I do wrong? How can I find my dream …
Distribution cannot create wealth, but it can allow the designers and operators of the distribution system to profit as “middlemen” and earn a great deal.
Selling the future profit expectations to the secondary market is Wall Street 1.0, P/E valuation.
Selling user base (active user count) to the secondary market is Wall Street 2.0, data valuation. This valuation concept is packaged as “Internet thinking” and sold as a universal truth.
Fundraising, doing business well, and listing at a good price is Web 1.0.
Fundraising, secretly buying traffic to inflate business data, and listing at a good price is Web 2.0.
Listing (going public), directly giving tokens to users/influencers, using leeks’ money to boost data, attracting more leeks to invest, using more leeks’ money to boost better data, entering a positive Ponzi loop… this is Web 3.0.
The advanced idea of Web 3.0 is decentralized traffic inflation, the decentralization of traffic intermediaries, and leeks’ self-indulgent traffic inflation.
From data to profit, there is a huge gap. Moreover, what commercial value can be derived from attracting users with free money? Besides, UBI is for distributing welfare, not for exploiting the commercial value of these users. You think the leeks really believe in this valuation logic? You laugh at the leeks for being crazy, and the leeks laugh at you for not seeing through it. What the leeks are gambling on is actually the arrival of even more foolish new leeks. This is called betting on foolishness.
If Worldcoin wants to distribute on a large scale, it must solve the problem of where the wealth for distribution comes from. Either through production or through deception. There is also the method of using force to take what’s not yours, but as a law-abiding enterprise, it cannot do that.
What Worldcoin cannot do, the Canadian government can. The latter can legally tax.
Recently, the Canadian news network CTV reported that the Canadian Parliament is considering two bills (S-233 and C-223) that are about giving unconditional money to all Canadian citizens: every citizen over the age of 17 can receive a no-strings-attached income every month.
Jim Dunn, the professor who led the UBI pilot project in Ontario, Canada, said that with unconditional basic income, workers and businesses will feel more secure and productive.
The Canadian government itself does not create wealth, so its unconditional distribution of money can only be redistribution.
If the source of the money is domestic taxes, then it is redistributing the wealth contributed by all taxpayers.
If the source of the money is printing more money, then it is using inflation to obtain hidden taxes and redistribute them.
When production is extremely scarce, the government needs to use food stamps and oil stamps to control consumption, which is a form of demand-based distribution. However, this demand is not determined by individuals but by the government.
When production is extremely abundant, the government directly distributes money unconditionally, which is also a form of demand-based distribution. Is Canada rushing into communism?
The supply line of UBI will eliminate jobs below this line. For example, if UBI is distributed at $10,000 per month, there may be no one willing to do jobs with a monthly salary below $10,000.
Therefore, the premise of implementing UBI (10,000) is that there are no jobs below $10,000 in the entire society.
This may have another effect: job seekers who originally hoped to strive for a monthly salary of $20,000 will lower their demands to $10,000 because UBI has already given them $10,000. This means that labor costs for businesses will decrease.
However, the cost is an increased tax burden for everyone and every business — explicit taxes or hidden inflation costs.
In summary, the UBI system is a forced “contribution” and a forced benefit.
In comparison, BTC is also about mutual contribution and benefits among people, but it is voluntary, based on the amount of holdings, not based on the number of people, and it requires contribution before receiving benefits. It is global rather than limited to one country, and there is no friction, which means there are no intermediaries such as project parties, insiders, and politicians who take advantage of the situation to exploit the leeks. It can be seen that BTC is not a UBI system.
Legally speaking, in a democratic country, the people can be regarded as shareholders of the country. However, these shareholder people are all individuals. At this time, UBI can be seen as a dividend to the people shareholders.
When Canada prints money, it still taxes the Canadian people. If the Federal Reserve prints money, it taxes people around the world. If the United States implements a UBI system, helicopters drop dollars, taxing people around the world and providing welfare to the American people, it will be even more enjoyable. It’s just that foreigners who are always being exploited and cannot enjoy the benefits will either want to immigrate to the United States to enjoy the benefits or want to overturn the table to stop being exploited. They must choose one of the two.
A system that only distributes and does not tax (because it lacks the ability to tax) is a scam. There are countless scams like this in the blockchain world.
However, the ability to tax is inevitably coercive. To have coercive power, it must be centralized. This is clearly contradictory to the decentralized nature of blockchain.
Therefore, a blockchain project that claims to have both distribution capabilities and decentralization is logically self-contradictory. One of them must be false: either the distribution is illusory (the distribution returns cannot cover the loss of the principal), or the decentralization is false (there are explicit or implicit centralized control points).
The Bitcoin system neither taxes nor distributes dividends.
(WeChat Official Account: Liu Jiaolian; Knowledge Planet: Reply with “Planet”)
(Disclaimer: The content of this article does not constitute any investment advice. Cryptocurrencies are highly risky assets with the risk of going to zero at any time. Please participate with caution and take responsibility for yourself.)
Tags:
Worldcoin
Liu Jiaolian
Investment Insights
Bitcoin
Random Thoughts
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Original article link: https://www.bitpush.news/articles/6733477
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