51–60 of 116 posts
What is the price of tulip bulbs in the Netherlands these days? What have been the ups and downs in that commodity over the years?
http://unqualified-reservations.blogspot.dk/2011/04/on-monet... Finally, we examine a new contender - the mysterious and awesome Bitcoin. I'll be frank with you, dear reader. When I came up with the MoMT, my first thought was: how can I, Mencius Moldbug, make some damned money from this? As system software is my first love, it was not that hard to think of an answer. In some ways Bitcoin is actually much better desig…
See also: http://blog.oleganza.com/post/42262765318/direct-use-value-o...
http://unqualified-reservations.blogspot.dk/2011/04/on-monet... Finally, we examine a new contender - the mysterious and awesome Bitcoin. I'll be frank with you, dear reader. When I came up with the MoMT, my first thought was: how can I, Mencius Moldbug, make some damned money from this? As system software is my first love, it was not that hard to think of an answer. In some ways Bitcoin is actually much better desig…
Not any more. Bitcoin-central.net in France already has all the licenses for exchange and knows its customers. MtGox is moving USD operations to US with Coinlab.
If it ever becomes successful, we will marvel that individuals could ever afford a bitcoin. 21 million is a tiny number for a currency when compared to $40 trillion in global currency ($6000 per person). ~$1.25 billion spend on Cyber Monday ~$8 billion are traded for oil every day ~$150 billion NYSE daily If bitcoin became the trusted currency for any of these activities what would it be worth? If bitcoin became the…
Deflation is destructive to the economy, so if bitcoin is deflationary by design, it can't ever be a primary currency, and thus it's expansion in usage is constrained from the get go.
Now, if you assume the market is smart, then there must be some other motive, other than usage, for appreciation. I suspect an artificial bubble.
Earlier quoted context omitted.
We are no longer on the gold standard because the gold was confiscated under threat of 10 years in prison. Please explain how holding a piece of metal under mattress destroys someone else's wealth, so you can come to a person and extract gold by force. http://2012patriot.files.wordpress.com/2011/06/executive_ord...
When you have a growing economy but a fixed money supply, money will appreciate. When this happens, people will prefer to keep money rather than spend it, and you get deflation-induced recessions/depressions. See the latter part of the 19th century in the US for repeated examples of this.
http://www.econtalk.org/archives/2012/04/eugene_white_on.htm...
Earlier quoted context omitted.
We are no longer on the gold standard because the gold was confiscated under threat of 10 years in prison. Please explain how holding a piece of metal under mattress destroys someone else's wealth, so you can come to a person and extract gold by force. http://2012patriot.files.wordpress.com/2011/06/executive_ord...
> Please explain how holding a piece of metal under mattress destroys someone else's wealth Inflation creates a strong incentive to allocate capital to productive investments. Inflation decreases the value of a currency, and therefore people attempt to allocate capital to investments that appreciate above the rate of inflation. Without inflation there would be less incentive to fund new companies, lend money etc... G…
My answer to everyone who thinks there is an objective distinction between productive and non-productive and advocates use of violence to redistribute resources: you are an egoistical immoral evil person who has no humility or interest in people around you. Instead of figuring out why people do what they do, you suggest pointing guns at them to do what you think is better for mysterious "society".
http://unqualified-reservations.blogspot.dk/2011/04/on-monet... Finally, we examine a new contender - the mysterious and awesome Bitcoin. I'll be frank with you, dear reader. When I came up with the MoMT, my first thought was: how can I, Mencius Moldbug, make some damned money from this? As system software is my first love, it was not that hard to think of an answer. In some ways Bitcoin is actually much better desig…
Earlier quoted context omitted.
In theory it can go 2-4 orders of magnitude higher. The value of all bitcoin now is about the value of a dozen tons of gold, or about 1% of the gold backing SPDR. Bitcoin is still minor-league, but it's knocking on the door of being significant. It will be interesting to see if any major governments freak out about bitcoin, or if any governments embrace it for, say, selling oil.
It's just a commodity, why would Governments freak out about a commodity? Whether or not bitcoins are currently in a commodity bubble or not is speculation, but bitcoins are no more a currency than Iron, Gold or Tulips are. In theory commodities can go to very high heights indeed.
Very interesting read[1] nonetheless.
[1] http://it.slashdot.org/comments.pl?sid=2875465&cid=40120...
Earlier quoted context omitted.
Keeping the fruit of your labor should be called saving, not hoarding.
Not when it's also the medium of exchange, and not when its got a fixed supply.
I expect a correction soon, as It happened last year. I wouldnt invest now any dollar.