The Fair Price of a Bitcoin is Zero • Hacker News Board

Re: The Fair Price of a Bitcoin is Zero

#61

Post by maaku » Wed, Dec 04, 2013, 4:34 PM UTC

bitcoin-truth wrote: post #48

maaku wrote: post #34

Earlier quoted context omitted.

Furthermore, theories in economics are descriptive. One should not expect with certainty an innovative currency to succeed or fail based on how well it matches a particular theory. When we are in new territory, we should expect a few surprises.

Scientific theories are falsifiable: they make testable predictions. Austrian Economic theory comes closest to this ideal.

And now you've discovered why economics is a social science. It builds models of human behavior. Humans are non-deterministic at this scale. As soon as you build an economic model, it's possible it stops working because its existence influences the behavior of the humans its modeling.

Re: The Fair Price of a Bitcoin is Zero

#62

Post by bitcoin-truth » Thu, Dec 05, 2013, 2:50 AM UTC

dragonwriter wrote: post #53

bitcoin-truth wrote: post #51

Earlier quoted context omitted.

The process of rapidly becoming a marketable commodity is called monetization. Bitcoin is in a hypermonetization melt-up phase.

> The process of rapidly becoming a marketable commodity is called monetization. No, its not. That's the process of printing money to pay off a debt. Or the act of a government making something legal tender. It might even be a tenable name for something becoming money (which isn't just a marketable commodity.) Things often become marketable commodities -- even rapidly, especially when they are newly discovered or new…

you are referring to monetization of debt. monetization per se is the process of becoming a money. Mises is a good read.

> (which isn't just _a_ marketable commodity.)

You got that right. It's _the_ marketable commodity.

> What is that even supposed to mean?

A melt-up is the opposite of a melt-down.

Re: The Fair Price of a Bitcoin is Zero

#63

Post by bitcoin-truth » Thu, Dec 05, 2013, 3:04 AM UTC

javert wrote: post #43

We do understand it bitcoin. You can think of bitcoin as "backed" by speculators. It has a market price, because speculators will give you other currencies for it. That is what makes it useful for value transfer (trade). And the more it is demanded for trade, the more liquid it will be, leading to less volatility and less risk for speculators. Whether the price holds up in the long run or crashes to near-zero is impo…

Jews and Gentiles in Moldbug's terminology.

Re: The Fair Price of a Bitcoin is Zero

#64

Post by javert » Thu, Dec 05, 2013, 7:14 PM UTC

bitcoin-truth wrote: post #63

javert wrote: post #43

We do understand it bitcoin. You can think of bitcoin as "backed" by speculators. It has a market price, because speculators will give you other currencies for it. That is what makes it useful for value transfer (trade). And the more it is demanded for trade, the more liquid it will be, leading to less volatility and less risk for speculators. Whether the price holds up in the long run or crashes to near-zero is impo…

Jews and Gentiles in Moldbug's terminology.

Can you please explain what you are talking about? I have no idea at all what you mean.

Re: The Fair Price of a Bitcoin is Zero

#65

Post by bitcoin-truth » Fri, Dec 06, 2013, 2:31 PM UTC

javert wrote: post #64

bitcoin-truth wrote: post #63

Earlier quoted context omitted.

Jews and Gentiles in Moldbug's terminology.

Can you please explain what you are talking about? I have no idea at all what you mean.

http://unqualified-reservations.blogspot.in/2013/01/how-bitc...