621–630 of 639 posts
I don't understand this. I don't understand any of it. I don't understand cryptocurrencies. I don't understand what problems they really solve. > "Ethereum is open access to digital money and data-friendly services for everyone – no matter your background or location. It's a community-built technology behind the cryptocurrency ether (ETH) and thousands of applications you can use today." I can do all these things alr…
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This is a term thrown around a lot. "Deflationary" has different meanings in different contexts. Conventional economists use "deflation" to mean "price deflation" -- that is, the price of goods, on average, decreases over time, as denominated in the currency in question. Austrian (heterodox) economists often use the term "deflation" and "inflation" to refer to changes in the money supply, rather than prices. In the c…
>For 1, no -- saying "Ethereum is deflationary" is equivalent to saying "the value of Ethereum will always go up", which is clearly nonsensical, because it's saying that Ethereum is a risk-free investment. It does make sense if you compare a less inflationary currencly to more inflationary currencies. It's risk free in the sense that the USD exchange rate will keep up with inflation of the USD in the long term.
So you can compare how "inflationary" currencies are by 2 & 3, but not by 1 -- that's not a mechanical effect. Even the most stringent monetarist in the world wouldn't at a minimum factor in monetary velocity into the value equation. And monetary velocity is a behavioral thing that can be mediated both by availability of current and future capital as well as liquidity preferences of individuals viewed in aggregate.
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No, it's like saying gold isn't scarce because anybody with a bee in their bonnet can launch "Gold 2.0" and create their own supply. Which is definitely not true for gold, but is demonstrably true for cryptocurrencies. I grant that crypocurrency fans will look at me weird, which I'm fine with. But economists (and most others) won't, because they understand that substitutability [1] affects scarcity. [1] https://en.wi…
Well if you believe any fork of bitcoin is bitcoin I have lots of cheap bitcoin to sell to you. There’s an attribute that you can’t substitute - chain difficulty. I’ll let you figure out the rest.
As Bitcoin itself proved, plenty of people will buy into a commodity because it's new and hot, and not because of any fundamental analysis of its value. In that sense, Bitcoin is not in any way scarce.
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Wow this sent me down a rabbit hole. How are the transactions composed, with a smart contract/s, in combination with Dex API’s?
Flash loans are composed using a smart contract. So basically you create a smart contract that will call all the DEX/loan platform/other contract functions necessary to obtain the loan, carry out swaps and pay it back. You then deploy that contract. Then you would have a separate program running on your client machine to scan for market opportunities, and when it spots one, have that program send a transaction to you…
I am incredibly happy about this. It's the first step for a major cryptocurrency towards ledger security that does not damage the environment via mining. I always hated how wasteful and energy-inefficient mining is. Staking reduces energy costs by many, many orders of magnitude. With lightweight clients in development, it is possible to validate chain using Raspberry Pi. I hope (but don't expect) that some time in th…
It doesn't damage the environment if used with solar power or an energy source that isn't damaging to the environment. In other words, it isn't necessary that it damages the environment.
Is it wasteful when you use the elliptical machine or tread mill? It is a tragedy that energy is being wasted in such magnitude in gyms around the world?
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Not sure where you get your facts, but Litecoin all-time-high was around $360. The founder, Charlie Lee, stayed and is still a visible and active advocate for litecoin to this day.
My bad, I was wrong about the peak price (this was just from memory, and that was almost 4 years ago -- however no excuse for not looking it up). I was, however, right about everything else. Lee sold all his coins, made a giant pile of money, the value of the coin collapsed to literally fractions -- and has yet to come anywhere close to a recovery. If Elon sold 100% of his Tesla shares and "stayed a visible and activ…
No, he didn't run away (he's still very active in the community: https://twitter.com/SatoshiLite) and the foundation wasn't on the brink of bankruptcy.
About the only thing you were right about is that he sold his coins. (According to him the reason was so he could be financially secure and able to focus on the project instead of feeling incentivized to pump the price)
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Just like USD :)
You must pay taxes in USD. BTC and USD are really not comparable.
I don't think taxes justify the value of a state currency, otherwise the value would fluctuate wildly when close to tax season.
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Well if you believe any fork of bitcoin is bitcoin I have lots of cheap bitcoin to sell to you. There’s an attribute that you can’t substitute - chain difficulty. I’ll let you figure out the rest.
Again, from a marketing perspective, it's not clear that matters. For a great number of cryptocurrency "investors", they're just buying magic beans. A fine piece of evidence comes from CNN today that digital currencies are effectively substitutable: https://www.cnn.com/2020/12/03/investing/bitcoin-ethereum-xr... As Bitcoin itself proved, plenty of people will buy into a commodity because it's new and hot, and not bec…
Also, bitcoin is scarce because it’s hard to get more of it, what the hell is your definition of scarcity? It seems to change from one comment to another.
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Again, from a marketing perspective, it's not clear that matters. For a great number of cryptocurrency "investors", they're just buying magic beans. A fine piece of evidence comes from CNN today that digital currencies are effectively substitutable: https://www.cnn.com/2020/12/03/investing/bitcoin-ethereum-xr... As Bitcoin itself proved, plenty of people will buy into a commodity because it's new and hot, and not bec…
How many more years of clear correlation between value and chain difficulty must pass for you to recognize that there’s something in there? Also, bitcoin is scarce because it’s hard to get more of it, what the hell is your definition of scarcity? It seems to change from one comment to another.
My definition of scarcity is when the people in the market to buy cannot easily get more of the thing that they want. For people just wanting to speculate, other cryptocurrencies are substitutable. And given how easy it is to start a cryptocurrency, the supply is effectively infinite.
And just to be clear, it's not Bitcoin in specific I'm concerned about. I think the same thing about all the cryptocurrencies, although I have more hope for other ones to eventually evolve toward delivering value.