Why a basic universal income cryptocurrency won't work.

There is only one instance where something like a universal basic income would work out. It's in a scenario when most people's jobs are replaced by robots/machines. Then instead of taxing labor governments need to tax the production of the robots. 

The reason why a basic universal income cryptocurrency can never work out is because you can't create money out of thin air. (you can but not sustainable) There is always someone paying the bill, that's a basic economic law.

You have to follow the money, who is paying "the basic income" that you receive and where does it come from? 

Most basic income cryptocurrencies use these 2 type of scheme's to create an illusion of free money:

1. They are a disguised ponzi scheme.
2. They print money.

1. A ponzi scheme works by paying out current investors with money from new investors. As long as you keep growing there is no problem but once the new investors don't bring in enough to pay out current investors the scheme ends. There is a thin line between multi level marketing and a ponzi scheme. Some multi level marketing scheme's offer you a product to create the illusion that they are a normal business. While their business model itself is just a ponzi because they need new user growth to stay in business. 

2. Another way to create the illusion of free money is by "printing" it. When you have a cryptocurrency without limited supply you can create more and pay out the basic income with that. In reality they are just diluting your own money to pay you out with. So the inflation will be as high like the payouts you receive. It's a zero sum game.

#Lunarexpress #Moongang