A Bitcoin UBI model to curb hyperinflation

Hyperinflation brings about detrimental effects to societies, as prices of all goods and services rise rapidly over a short period of time, whereas your income and savings remain stagnant, thus leading to a significant decrease in purchasing power very quickly.

Globally, there are several countries plagued by hyperinflation or generally high inflation due to unsustainable monetary policies, fiscal policies, which led to the devaluation of their local currencies in foreign exchange markets thereby eroding the purchasing power of the government, businesses and its citizens. This sets off a ripple effect where the state would no longer be able to afford to maintain public goods, businesses unable to compete internationally and individuals no longer have the purchasing power to improve their lives, thus leading to an economic collapse and social breakdown.

In the article below, I set out to make a case on how countries plagued by hyperinflation can overcome it through the adoption of Bitcoin and reap the benefits of paying Bitcoin as a universal basic income (UBI) through Stacks’ Proof-of-Transfer (PoX) mechanism.

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Politics or No Politics?

As the world moves into unprecedented times, government around the world struggle to cope with the crisis and through the crisis it exposes a lot more cracks within the community where underlying unhappiness were amplified during these challenging times.

In most countries, the democratic way of governing and introducing of policies are through the election of politicians by the members of the public. Inorder for politicians to win the trusts of the public, they need to show their competency in addressing issues that the public are concern about as well as safeguarding the nation’s interest. They do so through proposing policies and engaging with the public on the grounds to understand issues that they face. In theory, these are all fine where politicians work for the interests of the public and in turn the public entrusts the politicians to act in their best interests and vote them into the government. However, as competition to gain the vote of the voters, politicians may deviate from long term thinking and engage in short term actions to win voters through policies that benefits them in the immediate future at the expense of long term sustainability.  Albeit the limitations of democracy, it works fine in times of peace, where the overall sentiment of the public is optimistic about the future, and feel that they have a chance to improve their lives through hard work and are treated fairly in the society.

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