Bubble, Bubble, Fraud and Trouble
nytimes.com
Bubble, Bubble, Fraud and Trouble
1–10 of 62 posts
Re: Bubble, Bubble, Fraud and Trouble
#2> Bitcoin, by contrast, has no intrinsic value at all.
This comes right after a paragraph describing how the US dollar has no intrinsic value other than the fact that it is the required currency for paying US taxes and that the Federal Reserve stabilizes it through the money supply (Modern Monetary Theory would argue these two points are effectively the same, but I digress).
Does this mean fiat currencies have intrinsic value? If so, how is this value more 'intrinsic' than the value a network gives a cryptocurrency?
Bitcoin's overextended and struggling network certainly makes it overvalued compared to the well-oiled machine that is the USD. But that's hardly a reason to write off cryptocurrencies in general.
Re: Bubble, Bubble, Fraud and Trouble
#3> Bitcoin, by contrast, has no intrinsic value at all. This comes right after a paragraph describing how the US dollar has no intrinsic value other than the fact that it is the required currency for paying US taxes and that the Federal Reserve stabilizes it through the money supply (Modern Monetary Theory would argue these two points are effectively the same, but I digress). Does this mean fiat currencies have intrin…
Do not elide over the word 'required.' It is not a meaningless word. In my opinion it makes all the difference. In comparison, the 'intrinsic value' of the network is not intrinsic at all. Miners and hodlers and users are free to use any other cryptocurrency, or none.
Re: Bubble, Bubble, Fraud and Trouble
#4> Bitcoin, by contrast, has no intrinsic value at all. This comes right after a paragraph describing how the US dollar has no intrinsic value other than the fact that it is the required currency for paying US taxes and that the Federal Reserve stabilizes it through the money supply (Modern Monetary Theory would argue these two points are effectively the same, but I digress). Does this mean fiat currencies have intrin…
> Does this mean fiat currencies have intrinsic value? If so, how is this value more 'intrinsic' than the value a network gives a cryptocurrency?
Because you are required to pay taxes.
> although Modern Monetary Theory would argue the two are effectively the same
Actually, if I understand correctly, MMT would argue that a central bank has very little control over money supply(other than in the rare case of acting as a "lender of last resort"). Instead, money is created through the act of deficit spending.
http://bilbo.economicoutlook.net/blog/?p=1623
A helpful illustriation by MMT'er Warren Mosler
> The question is, “How do you turn litter into money?”
> So, I take my business cards out here, and these are twenty dollars a piece, if anybody wants to buy any. No? Any takers? No? Okay.
> All right, well if anybody wants to stay after and help clean up the carpet and tidy up the room, I’m going to pay one per hour. Or five per hour, or whatever, one per hour. Anybody want to stay and help? Okay, not a lot of takers.
> Then I add one more thing: Look, there’s only one way out of here and there’s a man at the door with a nine millimeter machine gun. Okay? And you can’t get out of here without five of my cards.
> Now things have changed. I’ve now turned litter into money. Now, you will buy these, you will work for these things if you want to get out. The man at the door is the tax man and that’s the function of taxes.
Re: Bubble, Bubble, Fraud and Trouble
#5> Bitcoin, by contrast, has no intrinsic value at all. This comes right after a paragraph describing how the US dollar has no intrinsic value other than the fact that it is the required currency for paying US taxes and that the Federal Reserve stabilizes it through the money supply (Modern Monetary Theory would argue these two points are effectively the same, but I digress). Does this mean fiat currencies have intrin…
[deleted]
Re: Bubble, Bubble, Fraud and Trouble
#6This article can be summed up as "Bitcoin is analogous to Tulip Mania". How many years does bitcoin have to be around and used for that analogy to stop being the dominant?
Re: Bubble, Bubble, Fraud and Trouble
#7"It’s a nifty trick. But what is it good for?"
The last time Krugman said this it was about the internet.
“The Internet’s impact on the economy has been no greater than the fax machine’s….ten years from now, the phrase “information economy” will sound silly. (1997)”
Re: Bubble, Bubble, Fraud and Trouble
#8Wouldn't be an article about Bitcoins without "bubble" and "tulip." It's really getting old - you'd think 7 years in there'd be something new to write about.
Re: Bubble, Bubble, Fraud and Trouble
#9Garbage opinion piece regurgitating fears already known. I mean jesus, he even says that it's about as useless as a $100 bill.
Sounds like this guy is just butthurt that he missed the last jump in price. There were other historical spikes. This isn't the first it won't be the last.
Re: Bubble, Bubble, Fraud and Trouble
#10> Bitcoin, by contrast, has no intrinsic value at all. This comes right after a paragraph describing how the US dollar has no intrinsic value other than the fact that it is the required currency for paying US taxes and that the Federal Reserve stabilizes it through the money supply (Modern Monetary Theory would argue these two points are effectively the same, but I digress). Does this mean fiat currencies have intrin…
> Does this mean fiat currencies have intrinsic value? If so, how is this value more 'intrinsic' than the value a network gives a cryptocurrency? Because you are required to pay taxes. > although Modern Monetary Theory would argue the two are effectively the same Actually, if I understand correctly, MMT would argue that a central bank has very little control over money supply(other than in the rare case of acting as…
> money is created through the act of deficit spending
A slight quibble:
All federal government spending is money creation. All federal government taxation or fees is money destruction.
If you ignore debt (not a very MMT thing to do), you could say that net money creation is deficit spending.