691–700 of 992 posts
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Armchair economists have been predicting inflation since 2008.
And they were right; it has been with us all the time. Look at health care and food.
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Pretty sure the modern machines that 1. Print the money 2. Harvest the Cotton and other raw materials 3. Transport the money 4. Secure the money (even in electronic form) 5. and about 100 other things All use "energy" the point of the OP's comment was about "wasted energy" which i would image is tied to climate change The idea that "printed money uses no energy because it is old tech" is just ignorant
Zero bitcoiners going "BUT WHAT ABOUT CONVENTIONAL MONEY HUH" provide numbers. Since you're too lazy to, I will: * Bitcoin: 0.1% of all electricity in the world, 7tps. * THE ENTIRE REST OF HUMAN CIVILISATION, EVERYONE IN IT AND EVERYTHING THEY DO: 99.9% of electricity, a hell of a lot more than 6,993tps. Bitcoin is the most inefficient payment system in history. Bitcoiners' usual objection at this point is to claim t…
And? Who are you to tell anyone how they should use their electricity? Do you want my advice on what you should be doing in your home?
> Bitcoin is the most inefficient payment system in history.
I think the "hauling big rocks between islands" currency was probably less efficient, at least on a per capita basis.
> then the entire bitcoin ecosystem should be replaced with a small rock
Then go ahead and do that. If people have trust in your rock then that will work fine.
You appear to have written two books about money. Do you not understand how it works yet?
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The underlying asset is utterly worthless, for all the reasons posited here in the article and more — that people are willing to pay you for it doesn’t change that.
Yes it does change that. If you can sell something for $29K you're not bag holding...
Bitcoin's value prop isn't in its anonymity. Early adopters weren't enthusiastic about bitcoin because they hoped it would end fractional reserve banking or any other financial product. Rather, it was incredible to see the entire financial industry quickly rebuilt on top of sound money. I agree that small transactions and mining can be (and are being) improved, but not for the same reasons. It's silly to blame bitcoi…
> Rather, it was incredible to see the entire financial industry quickly rebuilt on top of sound money. What is your definition of sound money? It has been said many times but it bears repeating that a money supply that grows more slowly than the economy it is traded in will be deflationary. Deflation inhibits economic activity because money saved is worth more tomorrow than today even when not invested in productive…
What is the rationale for this? Because by that token, nobody would ever buy computers, because the money saved by not buying a computer today can go into buying a better computer tomorrow.
if anything, deflation is fantastic because it makes you think twice before rampantly consuming shit, which is going to be much better for the environment than the misaligned incentives of demand-side economics. (not that supply-side is any better).
Finally, inflation redirects real returns from the poor to the rich and deflation does the reverse. Japan (which has had net ~0% official inflation over the last 30 years) has had a stable GINI coefficient; the US has gotten worse and worse.
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> When a bank lends out US dollars, they are effectively creating new money that is treated as “real” money. They don’t technically lend out the deposits. This is exactly wrong. In fact, it is the origin of the term "fractional reserve": They are reserving a fraction of the deposits and lending out the rest.
Right, but in crypto world most people regard coins held in custody as different from coins held in a private wallet. The Mt Gox experience was a good lesson on this topic, if it’s not your keys, it’s not your bitcoin. In comparison, very few people distinguish paper cash money from a bank credit backed by a fractional reserve.
I would add the words "in the modern era". My grandparents generation regarded those two as very different, having lived through the bank runs of the depression.
The difference between their gen and mine is due to the advent of the FDIC. This would also address your point about Mt Gox: Had there been insurance, Mt Gox would not have been such a clusterfk.
So no surprise: Coinbase and Bakkt both tout the insurance of their holdings. It's not quite FDIC levels (ie, a defacto government backing) but it's getting closer. As a consequence, it is not too hard for me to imagine a time that custodial accounts will have nearly the same confidence as a private wallet, because the equivalent of FDIC will likely be created by bitcoin-based institutions.
Clearly. [1]
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I'm confused by how much I agree with you
I think its a no brainer and possible doom scenario. Is it possible? There are common operations like... the L1L2 norm that are used across machine learning. Is there a way to craft an operation like a regularizer that is both useful and profitable? Or could up you use a block as an initialization parameter and somehow make use of it? A prediction task itself might work - solve this provably hard problem and you own…
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> Rather, it was incredible to see the entire financial industry quickly rebuilt on top of sound money. What is your definition of sound money? It has been said many times but it bears repeating that a money supply that grows more slowly than the economy it is traded in will be deflationary. Deflation inhibits economic activity because money saved is worth more tomorrow than today even when not invested in productive…
> Deflation inhibits economic activity because money saved is worth more tomorrow than today even when not invested in productive enterprise. What is the rationale for this? Because by that token, nobody would ever buy computers, because the money saved by not buying a computer today can go into buying a better computer tomorrow. if anything, deflation is fantastic because it makes you think twice before rampantly co…
> What is the rationale for this?
The rationale is explicitly stated.
> Because by that token, nobody would ever buy computers, because the money saved by not buying a computer today can go into buying a better computer tomorrow.
No, because then you lose out on the utility of the computer today.
The argument was about financial investments; that it discourages investments in productive enterprise since holding cash produces a real gain at low risk. Putting off buying future potential money via investment in productive enterprises because holding money gives you more value of money in the future with less risk than investment in productive enterprise and the liquidity of money now is not parallel to deferring buying a computer to buy a better one later.
> if anything, deflation is fantastic because it makes you think twice before rampantly consuming shit,
While you call it “fantastic”, that's just another way deflation depresses economic activity, discouraging consumption as well as productive investment. (Of course, discouraging consumption also further discourages investment itself.)