wow. such blog. much words.
Please, for the love of doge, put the meme phrases in the correct order.
wow. such autism. very aspergers
How Dogecoin changed my perspective on cryptocurrency
51–60 of 173 posts
Re: How Dogecoin changed my perspective on cryptocurrency
#52Here's an interesting observation I made. You can instantly become both the world's richest and generous person. Take a friend that you trust, and sell him a piece of paper for $10000000000000 billion dollars. Suppose he agrees (even if he doesn't have that money right now, he/his descendants can pay it off over their lifetimes). Now you have $10000000000000 billion dollars of wealth. But, you decide to be generous a…
I think that's where the IRS' definition of "fair market" value comes into play. They'd only tax you on the market value of that piece of paper... which is $0.
Good point. But what if it's some weird personalized product/service that is worth a lot to one person but worthless to everyone else (like personal memories, photos, etc.).
Re: How Dogecoin changed my perspective on cryptocurrency
#53There is one other aspect here I find very interesting, and it has to do with the efficient market hypothesis. The fact that people are buying Dogecoin simply because it is a fun internet meme kind of flies in the face of people who still view the price of financial assets as mostly rational, value-based prices, that can be deconstructed along the lines of asset-based valuation, financial ratios, available informatio…
"Rational" has never meant that people know what they need, only that they know what they want. And people can "want" things for any number of silly or rational reasons. In the case of Dogecoin, it may be silly to you, but humor is the "rational value" people are getting from trading it.
Re: How Dogecoin changed my perspective on cryptocurrency
#54There is one other aspect here I find very interesting, and it has to do with the efficient market hypothesis. The fact that people are buying Dogecoin simply because it is a fun internet meme kind of flies in the face of people who still view the price of financial assets as mostly rational, value-based prices, that can be deconstructed along the lines of asset-based valuation, financial ratios, available informatio…
Part of the reason is because for the longest time, the smallest unit of "value" recognized by most people was 1 US Cent.
Crypto currencies, like Dogecoin are intrinsically more divisible.
If someone made a funny comment on the internet, and i wanted to reward them.
In 2012, I might "like" or "upvote" their comment -- a subjective measure of appreciation.
In early 2013, I might "give gold" or "gild" comments or posts I like on reddit.
In 2014, I'll probably just give some Doge, or whatever the new popular currency is (which I can easily buy with my other altcoin/currencies online). I can also give more or less based on how much I want.
This wouldn't work with pennies or USD because 100 Doge still __feels__ like a lot -- even though it's some fraction of a penny.
For a long time, people would give each other "internets" to reward what they like. The only difference now is that you can buy internets with real money, and they retain at least some quantitative value.
Re: How Dogecoin changed my perspective on cryptocurrency
#55There is one other aspect here I find very interesting, and it has to do with the efficient market hypothesis. The fact that people are buying Dogecoin simply because it is a fun internet meme kind of flies in the face of people who still view the price of financial assets as mostly rational, value-based prices, that can be deconstructed along the lines of asset-based valuation, financial ratios, available informatio…
Dogecoin is a good, not a medium of exchange. Why do people buy iPhone apps? iPhone apps don't even have resale value.
The word you're looking for is "asset", and mediums of exchange are by definition always assets. When people talk about their aspirations for Bitcoin, the most techno-utopians want it to become a commonly accepted store of value or unit of account.
Keep in mind that mediums of exchange can be seen as purely "any mechanism that can signal the irrevocable transfer of the value". The innovation btc brings to this is instead of transferring physical items you create cryptographic hashes that you then publicize.
It's worth noting that when we talk about money we're trying to describe emergent phenomena. This is what we've got, and the following items are just useful ways of thinking about the issue - except unlike in physics we don't have the leeway to conduct careful, repeatable experiments.
http://en.wikipedia.org/wiki/Asset http://en.wikipedia.org/wiki/Medium_of_exchange http://en.wikipedia.org/wiki/Store_of_value http://en.wikipedia.org/wiki/Unit_of_account
I forget the (accounting/financial) term for talking expenditures like videogames or movies or haircuts. I'm pretty sure we can describe those all as "services" but I've yet to find the appropriate wikipedia article. If someone can jog my memory that'd be great.
Re: How Dogecoin changed my perspective on cryptocurrency
#56There is one other aspect here I find very interesting, and it has to do with the efficient market hypothesis. The fact that people are buying Dogecoin simply because it is a fun internet meme kind of flies in the face of people who still view the price of financial assets as mostly rational, value-based prices, that can be deconstructed along the lines of asset-based valuation, financial ratios, available informatio…
Someone might rightfully ask the question, "Should I invest in Dogecoin?", and at this stage of our financial markets, I really don't have a good answer for that. This is where recognising a distinction between investing and speculating comes in handy. It's quite possible to speculate in dogecoin (relying on greater fools coming after) in the short term and make some money. In the long term it is extremely unlikely t…
> Perhaps the next currency to emerge will be corporate sponsored rather than state-sponsored,
What about celebrity-sponsored? "Buy his next album in Bieber-coin."
Re: How Dogecoin changed my perspective on cryptocurrency
#57There is one other aspect here I find very interesting, and it has to do with the efficient market hypothesis. The fact that people are buying Dogecoin simply because it is a fun internet meme kind of flies in the face of people who still view the price of financial assets as mostly rational, value-based prices, that can be deconstructed along the lines of asset-based valuation, financial ratios, available informatio…
Someone might rightfully ask the question, "Should I invest in Dogecoin?", and at this stage of our financial markets, I really don't have a good answer for that. This is where recognising a distinction between investing and speculating comes in handy. It's quite possible to speculate in dogecoin (relying on greater fools coming after) in the short term and make some money. In the long term it is extremely unlikely t…
I disagree. Dogecoin has the backing of one of the strongest communities on the internet. It's quite feasible to see it as a virtual currency used to pay for online goods, such as karma, games, or media.
It's friendliness means it may be adopted by the majority of consumers, who are scared off by the volatility and high price of bitcoins.
What needs to happen? First, it needs to distance itself from the meme part of it, and just become the standard fun, digital currency. Second, the barriers to entry need to be reduced. That means buying DOGE with USD instead of bitcoins, and easy online wallets. Finally, it needs uses, the most likely to happen are inter-app payments, such as over reddit or imgur.
Re: How Dogecoin changed my perspective on cryptocurrency
#58I was in the early days of Dogecoin and it was fun BECAUSE it was worthless. Give out 10k on a lark for a funny picture, etc.
Now that's it's being seen a real story of value, rather than a tool to send a bit of karma around... it's kinda losing the fun. Serious investor/speculator people are buying and selling, arbitrage between exchanges, absolutely massive GPU farms that out mine anything regular person could get.
I guess that's what an efficient market does. Reminds me of the auction house in Diablo 3 where the developers finally realized that an efficient market drained all the fun out of playing the game.
I still have a bunch so one part of me hopes it goes up in real value but the other part of me hopes it stays worthless so it can continue to be used the way it was at the start.
Re: How Dogecoin changed my perspective on cryptocurrency
#59I absolutely love doge coins. And I absolutely hate bitcoins. I will never own a bitcoin, and if anyone tells me to use bitcoins I will refuse.
It's time for doge to go to the moon, and the community behind dogecoin deserves every piece of their success right now.
Re: How Dogecoin changed my perspective on cryptocurrency
#60Here's an interesting observation I made. You can instantly become both the world's richest and generous person. Take a friend that you trust, and sell him a piece of paper for $10000000000000 billion dollars. Suppose he agrees (even if he doesn't have that money right now, he/his descendants can pay it off over their lifetimes). Now you have $10000000000000 billion dollars of wealth. But, you decide to be generous a…
You've also massively increased GDP, good job!
Another interesting observation on subjective value; if you put your money into another currency, say bitcoin, and the exchange rates change, you have to pay taxes on that. You haven't actually produced anything or gained any income or even sold your bitcoins yet, just changes in exchange rates. Because someone somewhere decided it was more valuable to them.
It also depends how long the tax period is. For example bitcoins can increase in value one month and decrease the next. Over the year you will have gained nothing, but if you had to pay taxes every month then you lose a lot. If we had a super-efficient government that could tax in real time, you would lose some money every time bitcoins (or whatever) increased slightly.
If only taxes could go negative for assets decreasing in value.