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The Cryptocurrency Singularity

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Re: The Cryptocurrency Singularity

#11

Post by RobertoG »

zupa-hu wrote: post #5

I'm confused. Gresham's law sais "bad money drives out good". Inflation is bad, so from that follows that the money that inflates more will be more used. Okay, I buy that. Then this: > When the singularity is reached, I think people will be more likely to choose to spend their inflationary fiat currency instead of their deflationary cryptocurrency. I'm lost here. People already prefer to spend USD over Bitcoin. So I…

I suspect that is not you who is confused, but the author of the article.

I don't think he has a good understanding of what money is or how it works.

It seems he thinks that there is limited quantity of dollars (or whatever) stacked under mattresses or something and that people is going to start spending them in order not to get stuck with them. It's funny.

Re: The Cryptocurrency Singularity

#12

Post by clarkmoody »

Rothbard's History of Money and Banking in the United States: The Colonial Era to World War II[1] wades through hundreds of years of Gresham's Law in action. Special attention is devoted to par laws and legal tender laws in exacerbating the tendency of banks to print more notes than there is metal in the vault.

[1] https://mises.org/library/history-money-and-banking-united-s... (free audio book, epub, and pdf available)

Re: The Cryptocurrency Singularity

#13

Post by clarkmoody »

jms18 wrote: post #7

> Will governments around the world begin to make their currency deflationary in order to make it attractive? rofl If you want people to use currency more, you make it inflate faster. This guy does not understand macroeconomics.

Q: How do you know macro economists have a sense of humor?

A: They use decimals.

Re: The Cryptocurrency Singularity

#14

Post by kylnew »

jms18 wrote: post #7

> Will governments around the world begin to make their currency deflationary in order to make it attractive? rofl If you want people to use currency more, you make it inflate faster. This guy does not understand macroeconomics.

thank you. I'm glad I'm not the only one who feels this article doesn't properly understand the intricacies of inflation/deflation in an economy

Re: The Cryptocurrency Singularity

#15

Post by bga »

gbaygon wrote: post #10
zupa-hu wrote: post #5

I'm confused. Gresham's law sais "bad money drives out good". Inflation is bad, so from that follows that the money that inflates more will be more used. Okay, I buy that. Then this: > When the singularity is reached, I think people will be more likely to choose to spend their inflationary fiat currency instead of their deflationary cryptocurrency. I'm lost here. People already prefer to spend USD over Bitcoin. So I…

I thought the same thing, the core idea of this article is in direct opposition of its conclusion. Bitcoin is going up in value, and according to the market predictions it will go way higher, so it's deflationary. Bitcoin holders will prefer to spend cash money to bitcoins anytime in speculation of future gains. I see bitcoin more of a speculative investment at the moment, than a type of currency. Only the ones that…

Bitcoin seems like an investment in proving the ideas that may eventually come to form a truly practical cryptocurrency.

Re: The Cryptocurrency Singularity

#16

Post by QAPereo »

sagitariusrex wrote: post #6

Whenever I read articles like this I'm reminded of this quote by Richard Buckminster Fuller "You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete." IMHO this is what Bitcoin is all about. Not a get-rich-quick scheme or whatever insults some people throw at it, but a sound, arguably better alternative to fiat currencies. Aside: If you h…

https://en.m.wikipedia.org/wiki/Ordovician–Silurian_extincti...

See them while they last.

Re: The Cryptocurrency Singularity

#17

Post by Rmilb »

gbaygon wrote: post #10
zupa-hu wrote: post #5

I'm confused. Gresham's law sais "bad money drives out good". Inflation is bad, so from that follows that the money that inflates more will be more used. Okay, I buy that. Then this: > When the singularity is reached, I think people will be more likely to choose to spend their inflationary fiat currency instead of their deflationary cryptocurrency. I'm lost here. People already prefer to spend USD over Bitcoin. So I…

I thought the same thing, the core idea of this article is in direct opposition of its conclusion. Bitcoin is going up in value, and according to the market predictions it will go way higher, so it's deflationary. Bitcoin holders will prefer to spend cash money to bitcoins anytime in speculation of future gains. I see bitcoin more of a speculative investment at the moment, than a type of currency. Only the ones that…

I think its unfair to dismiss the currency aspect of bitcoin. The use case for the developed world is 95% speculation 5% buying contraband online however, for people in Venezuela[1], girls learning to code in Afghanistan[2], or women in Saudi Arabi who can't legally open a bank account, Bitcoin is solving problems that under banked people have now. Of course the ecosystem needs to mature so grandma can use it safely, but that will come with time.

[1] https://www.cnbc.com/2017/08/24/bitcoin-mining-is-popular-in... [2] https://www.coindesk.com/how-bitcoin-helps-afghan-girls-achi...

Re: The Cryptocurrency Singularity

#18

Post by root_axis »

sagitariusrex wrote: post #6

Whenever I read articles like this I'm reminded of this quote by Richard Buckminster Fuller "You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete." IMHO this is what Bitcoin is all about. Not a get-rich-quick scheme or whatever insults some people throw at it, but a sound, arguably better alternative to fiat currencies. Aside: If you h…

Bitcoin is not "better" than fiat currencies, it's worse in every way except for the fact that it is not operated by a central authority. In terms of convenience, security, and ease of use it is clearly worse. The world does need a "back channel" currency, and bitcoin is a perfect fit for this, but it will never move beyond that because there's simply no reason for the masses to use it.

Re: The Cryptocurrency Singularity

#19

Post by jron »

root_axis wrote: post #18
sagitariusrex wrote: post #6

Whenever I read articles like this I'm reminded of this quote by Richard Buckminster Fuller "You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete." IMHO this is what Bitcoin is all about. Not a get-rich-quick scheme or whatever insults some people throw at it, but a sound, arguably better alternative to fiat currencies. Aside: If you h…

Bitcoin is not "better" than fiat currencies, it's worse in every way except for the fact that it is not operated by a central authority. In terms of convenience, security, and ease of use it is clearly worse. The world does need a "back channel" currency, and bitcoin is a perfect fit for this, but it will never move beyond that because there's simply no reason for the masses to use it.

Is there a reason for the masses to hold it?

Re: The Cryptocurrency Singularity

#20

Post by [deleted] »

gbaygon wrote: post #10
zupa-hu wrote: post #5

I'm confused. Gresham's law sais "bad money drives out good". Inflation is bad, so from that follows that the money that inflates more will be more used. Okay, I buy that. Then this: > When the singularity is reached, I think people will be more likely to choose to spend their inflationary fiat currency instead of their deflationary cryptocurrency. I'm lost here. People already prefer to spend USD over Bitcoin. So I…

I thought the same thing, the core idea of this article is in direct opposition of its conclusion. Bitcoin is going up in value, and according to the market predictions it will go way higher, so it's deflationary. Bitcoin holders will prefer to spend cash money to bitcoins anytime in speculation of future gains. I see bitcoin more of a speculative investment at the moment, than a type of currency. Only the ones that…

[deleted]
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