Fundamental difference between a currency accruing value due to superior characteristics over its competitors, and a Ponzi scheme where a truly worthless good that only has transitory value because it’s “the next big thing” is passed along from original entrants to new entrants. USD has no “inherent” value (not even the “full faith and credit of the government”) either, and critical issues where the broader institution responsible for its issuance is a corrupt war-mongering police state. If we’re being honest here.
Yeah, I’ll just unlearn all the monetary theory books I read because, trust me bro money is worthless. I got this new money, it’s worth more money. I see now.
Am I supposed to treat this like a good faith comment? Let’s assume you’re wrong, how would I even reply? It’s basically “no u”.
If you really know so much about monetary theory I’d expect you to lead with what you actually know, not just vaguely allude to how much you know. Right?
I’d expect that I wouldn’t want to waste time trying to convince a brainwashed crypto bro or that I give a single fuck past making fun of you.
Here’s some super basics of almost all monetary economic theory. Currency is a medium of exchange. It’s velocity (or rare it moves through the economy) is a vital measure of the health of the economy and effectiveness of the currency. How easy is it to go buy something with Bitcoin, and how fast is it moving through hands in an economy? Oh, it’s a joke as a currency you say? Description of how it is being used sounds exactly like a ponzi scheme for some reason.
See to everyone else, it’s very, very obvious why it’s a ponzi scheme. It will collapse someday. As it’s only real use is as a very ineffective currency. Somehow people like you have made that worth tens of thousands of dollars to each other.
See, this is the classic bad faith anti-blockchain argument. Article we’re talking about is about NFTs, which are based on Ethereum, an extremely sophisticated blockchain with proof-of-stake, smart contract capability, and a huge infrastructure of people who’ve built economic machinery on top of it and are using it actively. But you want to prove your point, so you cherry-pick Bitcoin, the very first “proof of concept” blockchain which has essentially had active development halt because the creator wanted anonymity, vanished into thin air, and the developers working on it largely refuse to hard-fork it, so which has no real smart contract capability, still uses wasteful proof-of-work, etc.
It’s not “obvious” that it’s a ponzi scheme, it’s the point you want to make so you’re just bending the facts and cherry-picking things to try to prove it. I’m not impressed. And tossing “monetary velocity” out there as a term isn’t making me think you’re some brilliant economist - if anything, monetary velocity is an overstressed concept in modern econ because the government sits around trying to manipulate it via interest rates instead of letting people’s actual spending priorities dictate how the economy works, leading to a consumerist frenzy and catastrophic boom/bust cycle.
Oh no, I used super basic short terms to explain something to someone I think is a moron. Let me detail flaws in every digital currency, NFT and type out an entire book for you cuz I give a fuck. I look forward to laughing at the collapse and truly believe all of you are beyond educating. So, yes I am arguing in bad faith. I don’t think you get that. Thought that was super obvious.
The issue is not much effort is put into developing price stability in cryptocurrencies, this is because it is counter to the incentives of the creators and early HODLers. They do not want price stability, they want significant price decreases, this causes people to speculate on the “currency” not use it as a currency. Until a cryptocurrency implements some form of MV=PY it will not really be successful as a currency.
How does one “implement” the equation for calculating GDP? All the (descriptive) variables in the equation are already present. IDK how that got 4 upvotes.
Several major cryptos are already used as media of exchange. That’s the actual criteria for “success of a currency”, relative usage. They haven’t overtaken USD, but let’s not pretend it’s just a speculative vessel, Ethereum sees over a million transactions per day.
You cannot, but you can increase money supply money supply more stably when following average GDP growth, and increase money supply more when velocity decreased- and atrophy the supply when it increases. And a currency is much more than just what people can spend at a store. It is what people keep their savings in, what companies pay their employees in, what banks lend.
This cannot be done with an unstable currency- you cannot have a debt that will either go up or down 20% in value in the same year. I do not think fiats are inherently more stable, but some fiats have proven to be somewhat more stable because of responsible central banking- its not a good idea to count on central banks being responsible for ever. But essentially all widely spread cryptos continue to have a significant amount held by speculators and therefore they cannot be stable currencies.
The simple answer is that fiats are only more stable because their relative worth is more settled. For the same reason small stocks are unstable while big blue chip stocks are (relatively) not. If you look at logarithmic charts of any big crypto over time you can literally see the volatility tapering out as the market cap increases.
Of the cryptos that survived yeah thats been true, except for the speculative rushes encouraged by a lot of hodlers. Furthermore, even those transactions are high- the velocity is still much lower than in most fiats where people put their excess in a bank that then invests with it.
Bunch of words about people working hard on a ponzi scheme doesn’t make it not functionally a ponzi scheme.
Fundamental difference between a currency accruing value due to superior characteristics over its competitors, and a Ponzi scheme where a truly worthless good that only has transitory value because it’s “the next big thing” is passed along from original entrants to new entrants. USD has no “inherent” value (not even the “full faith and credit of the government”) either, and critical issues where the broader institution responsible for its issuance is a corrupt war-mongering police state. If we’re being honest here.
If a currency were a superior currency it would not necessarily increase in value, it would increase in acceptance and (generally) velocity.
https://www.statista.com/statistics/730818/average-number-of-ethereum-transactions/
Yeah, I’ll just unlearn all the monetary theory books I read because, trust me bro money is worthless. I got this new money, it’s worth more money. I see now.
Am I supposed to treat this like a good faith comment? Let’s assume you’re wrong, how would I even reply? It’s basically “no u”.
If you really know so much about monetary theory I’d expect you to lead with what you actually know, not just vaguely allude to how much you know. Right?
I’d expect that I wouldn’t want to waste time trying to convince a brainwashed crypto bro or that I give a single fuck past making fun of you.
Here’s some super basics of almost all monetary economic theory. Currency is a medium of exchange. It’s velocity (or rare it moves through the economy) is a vital measure of the health of the economy and effectiveness of the currency. How easy is it to go buy something with Bitcoin, and how fast is it moving through hands in an economy? Oh, it’s a joke as a currency you say? Description of how it is being used sounds exactly like a ponzi scheme for some reason.
See to everyone else, it’s very, very obvious why it’s a ponzi scheme. It will collapse someday. As it’s only real use is as a very ineffective currency. Somehow people like you have made that worth tens of thousands of dollars to each other.
See, this is the classic bad faith anti-blockchain argument. Article we’re talking about is about NFTs, which are based on Ethereum, an extremely sophisticated blockchain with proof-of-stake, smart contract capability, and a huge infrastructure of people who’ve built economic machinery on top of it and are using it actively. But you want to prove your point, so you cherry-pick Bitcoin, the very first “proof of concept” blockchain which has essentially had active development halt because the creator wanted anonymity, vanished into thin air, and the developers working on it largely refuse to hard-fork it, so which has no real smart contract capability, still uses wasteful proof-of-work, etc.
It’s not “obvious” that it’s a ponzi scheme, it’s the point you want to make so you’re just bending the facts and cherry-picking things to try to prove it. I’m not impressed. And tossing “monetary velocity” out there as a term isn’t making me think you’re some brilliant economist - if anything, monetary velocity is an overstressed concept in modern econ because the government sits around trying to manipulate it via interest rates instead of letting people’s actual spending priorities dictate how the economy works, leading to a consumerist frenzy and catastrophic boom/bust cycle.
Oh no, I used super basic short terms to explain something to someone I think is a moron. Let me detail flaws in every digital currency, NFT and type out an entire book for you cuz I give a fuck. I look forward to laughing at the collapse and truly believe all of you are beyond educating. So, yes I am arguing in bad faith. I don’t think you get that. Thought that was super obvious.
Well, maybe some day we’ll all catch a glimpse of your true brilliance.
Never claimed to be brilliant, just said I’m not stupid enough to be unable to realize what is a clear ponzi scheme.
The issue is not much effort is put into developing price stability in cryptocurrencies, this is because it is counter to the incentives of the creators and early HODLers. They do not want price stability, they want significant price decreases, this causes people to speculate on the “currency” not use it as a currency. Until a cryptocurrency implements some form of MV=PY it will not really be successful as a currency.
How does one “implement” the equation for calculating GDP? All the (descriptive) variables in the equation are already present. IDK how that got 4 upvotes.
Several major cryptos are already used as media of exchange. That’s the actual criteria for “success of a currency”, relative usage. They haven’t overtaken USD, but let’s not pretend it’s just a speculative vessel, Ethereum sees over a million transactions per day.
You cannot, but you can increase money supply money supply more stably when following average GDP growth, and increase money supply more when velocity decreased- and atrophy the supply when it increases. And a currency is much more than just what people can spend at a store. It is what people keep their savings in, what companies pay their employees in, what banks lend.
This cannot be done with an unstable currency- you cannot have a debt that will either go up or down 20% in value in the same year. I do not think fiats are inherently more stable, but some fiats have proven to be somewhat more stable because of responsible central banking- its not a good idea to count on central banks being responsible for ever. But essentially all widely spread cryptos continue to have a significant amount held by speculators and therefore they cannot be stable currencies.
The simple answer is that fiats are only more stable because their relative worth is more settled. For the same reason small stocks are unstable while big blue chip stocks are (relatively) not. If you look at logarithmic charts of any big crypto over time you can literally see the volatility tapering out as the market cap increases.
Of the cryptos that survived yeah thats been true, except for the speculative rushes encouraged by a lot of hodlers. Furthermore, even those transactions are high- the velocity is still much lower than in most fiats where people put their excess in a bank that then invests with it.