How can Bitcoin stabilize if it's a Keynesian Beauty Contest?
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Re: How can Bitcoin stabilize if it's a Keynesian Beauty Contest?
#2Bitcoin is stable in reference to itself, just as USD is stable in reference to itself.
Re: How can Bitcoin stabilize if it's a Keynesian Beauty Contest?
#3Bitcoin is stable in reference to itself, just as USD is stable in reference to itself.
USD is also stable in reference to almost everything else.
Bitcoin isn't.
Re: How can Bitcoin stabilize if it's a Keynesian Beauty Contest?
#4Re: How can Bitcoin stabilize if it's a Keynesian Beauty Contest?
#5Re: How can Bitcoin stabilize if it's a Keynesian Beauty Contest?
#6Re: How can Bitcoin stabilize if it's a Keynesian Beauty Contest?
#7Bitcoin is stable in reference to itself, just as USD is stable in reference to itself.
USD is also stable in reference to almost everything else. Bitcoin isn't.
Bitcoin has been pretty stable around $6500 for the past month. And for six months has been way more stable than The Shitcoins (BTC has gone from 30% to 50+% of total market cap in that time).
Humorous summary of price fluctuations since 2010: https://www.youtube.com/watch?v=XbZ8zDpX2Mg
Re: How can Bitcoin stabilize if it's a Keynesian Beauty Contest?
#8Earlier quoted context omitted.
USD is also stable in reference to almost everything else. Bitcoin isn't.
Would you consider USD also subject to a Keynesian Beauty Contest?
Along with most stocks. I think the key isn't whether something is/isn't a KBC, but how much other stuff exists that helps anchor it to some kind of objective reality.
Re: How can Bitcoin stabilize if it's a Keynesian Beauty Contest?
#9Bitcoin is stable in reference to itself, just as USD is stable in reference to itself.
There is a powerful entity (the Fed) focused on keeping it stable in reference to consumer goods and services.
Re: How can Bitcoin stabilize if it's a Keynesian Beauty Contest?
#10It is empirically the case that Keynesian beauty pageant assets can have stable prices: e.g. gold.