Traditional economies lack verifiable data: blockchain fixes this

Almost every data we know and cite for varying reasons are derived from questionable sources that base their reporting off surveys, estimations models and outright assumptions.

This is a huge problem in the grand scheme of things.

I mean, let's think about it for a minute. How can a survey paint a clear picture of specific sections, sectors or segments of an economy or people if the reported data is based on a collection of responses from only 50,000 people when the focus economy for said survey has over 200M people?

In addition to this, how can we prove that the data presented are accurate? When we understand that those being surveyed may lie or misrepresent values and that the companies, institutions or organizations carrying out said surveys could as well misreport the data for various reasons, these flaws essentially make surveys a not very trustworthy system and yet, it's the only thing we have and work with.

Estimation models and assumptions come with their own mountain of flaws beginning with the fact that true values are never really known and everything reported are simply “fill-ins” for what's missing and that's essentially just guesses based on generalized perception of whatever is in question.

Speaking of questions, these flaws raise concerns and questions on how an economy can be effectively run if the system lacks access to verifiable data on what really goes on within said economy.

Everything we know and trust is based on numbers and values pulled out of somebody's ass and as a result, most of it is widely inaccurate.

How can we know true GDP if the informal sector cannot be effectively accounted for? Even the formal sector will have its own layers of missing data.

How can we know the true unemployment and poverty rate if the data we rely on is based on surveys that don't include everyone and frankly based on responses that could not have been truthful?

What about the inflation rate which is based on a basket of goods whose composition may not cover true consumption patterns because you know, there's lots of layers that cannot be accounted for?

Literally most of the data that is heavily used to direct our economies are not variable, essentially leading to a situation where enacted policies cause more harm than good because there was simply so much not accounted for.

Blockchain fixes the data flaw of traditional economies

When you have a technology you can simply look onchain and determine just what % of investors are in profit, you have an incredible leverage to build great economies.

Oftentimes, crypto native media make reports on crypto holders in profits, particularly for assets like Bitcoin and most don't realize how this is a great indicator for how blockchain can be better alternative systems for directing economies.

Of course, when it comes to traditional finance and economies, it's hard to determine who is actually in profit and who isn't because there's a whole lot of separate laying pieces that “being in profit” means different things for different people and primarily data sources are just not “good enough” to paint a clear picture.

In the sense of applying this to the real world, data on holders in profit could be likened to people with comfortable finances being that their wealth, investment, savings, whatever, is still above levels that would directly translate to being at edge and living at higher costs.

That is, a Bitcoin holder in profit is comparable to someone who's comfortable under current economic realities.

But we know today that such data cannot be attained without lots of misrepresentations. But with blockchain, it's just a matter of looking onchain and we can determine if people are comfortable enough to survive through any drastic economic policies.

When we can account for real cost, we can make better decisions that's for the greater good.

I am saying this because the current situation with the United States and global responses seems to have lots of people overstating how well situated others are to survive a global financial crisis.

Lots of comments like “you just got a chance to buy in cheap” then you'd find contradicting second comments like “8% of the population own most of the stocks,” bla bla bla.

Nobody stops to ask why the vast population isn't invested as much and at the same time, they tend to think that because they aren't directly invested that there wouldn't be consequences for them.

In reality, there's lots of indirect consequences for the average person when global markets tank and circuit breakers are literally triggered like today.

The world needs saving and it starts with economies and all finances moving on-chain. The good thing is that even in a privacy-facing era, proving validity of data would still be possible.

This is one of the most underexplored values of blockchain technology.