4 ms·

How is having a company where the founders/banks own 70% of all the stock and deflation builtin any better?

elmar 9y ago
if you have stock options and are rising money trough emission of new stock (not selling currently owned stock) you have inflation not deflation.
pedrocr 9y ago
Company stocks are not designed to be used as the basis for trade for whole economies. Fractional ownership of an operating business if very different from fractional ownership of a whole currency.
- clarkmoody 9y ago
  > Company stocks are not designed to be used as the basis for trade for whole economies Neither is Bitcoin.
  - pedrocr 9y ago
    So what is it useful for?
    - sillysaurus3 9y ago
      For being a store of value.
      - pedrocr 9y ago
        It seems to me that bitcoin proponents will change between saying that it's useful for transactions and useful for storing value depending on what's convenient for the argument. If the point of Bitcoin is to be the cyberpunk version of gold where the founder gets 5% of the total global value it seems a niche technology at best. And if it's that, let's stop calling it a cryptocurrency and just call it cryptogold.
      - PeterisP 9y ago
        What value? The market cap of bitcoin relies on an assumption that it will be used on a large scale as a transactional currency - its usefulness for transactions and the expectation that this usefulness will increase in the long run is the only thing that makes bitcoin valuable. Without this assumption there's no inherent value; and thus it's also a bad store of value since the current market cap can't be justified if it doesn't stay/become a popular transactional currency.
        guscost 9y ago
        This might have been true five years ago. These days most of its perceived value is due to the fact that people around the world trust it to hold value better than other investments available to them. It sounds like nonsense because it is, but so is all of economics in a way.
        solotronics 9y ago
        people in venezuela have been experiencing double and triple digit inflation. two years ago it was 100/USD now it is 1000/USD. you could argue that gold is a good store of value for them but there are problems with storage of it and hiding it from corrupt state officials if you wanted to use it for daily purchases. contrast this with Bitcoin that literally anyone with a cellphone can own and transact with anyone else with a phone or computer. you can hide and send any amount of Bitcoin anywhere you can write down a string of digits. as we solve the scaling problems for daily transaction type purchases it will really take off big time.
        pedrocr 9y ago
        >Bitcoin that literally anyone with a cellphone can own and transact with anyone else with a phone or computer. I doubt it's actually possible to run a full node on a phone. If you're relying on an exchange then you're not really using any special bitcoin feature. Normal internet banking to a geography that isn't screwed up would work just fine.

if you have stock options and are rising money trough emission of new stock (not selling currently owned stock) you have inflation not deflation.

pedrocr 9y ago

Company stocks are not designed to be used as the basis for trade for whole economies. Fractional ownership of an operating business if very different from fractional ownership of a whole currency.

clarkmoody 9y ago
> Company stocks are not designed to be used as the basis for trade for whole economies Neither is Bitcoin.
- pedrocr 9y ago
  So what is it useful for?
  - sillysaurus3 9y ago
    For being a store of value.
    - pedrocr 9y ago
      It seems to me that bitcoin proponents will change between saying that it's useful for transactions and useful for storing value depending on what's convenient for the argument. If the point of Bitcoin is to be the cyberpunk version of gold where the founder gets 5% of the total global value it seems a niche technology at best. And if it's that, let's stop calling it a cryptocurrency and just call it cryptogold.
    - PeterisP 9y ago
      What value? The market cap of bitcoin relies on an assumption that it will be used on a large scale as a transactional currency - its usefulness for transactions and the expectation that this usefulness will increase in the long run is the only thing that makes bitcoin valuable. Without this assumption there's no inherent value; and thus it's also a bad store of value since the current market cap can't be justified if it doesn't stay/become a popular transactional currency.
      - guscost 9y ago
        This might have been true five years ago. These days most of its perceived value is due to the fact that people around the world trust it to hold value better than other investments available to them. It sounds like nonsense because it is, but so is all of economics in a way.
      - solotronics 9y ago
        people in venezuela have been experiencing double and triple digit inflation. two years ago it was 100/USD now it is 1000/USD. you could argue that gold is a good store of value for them but there are problems with storage of it and hiding it from corrupt state officials if you wanted to use it for daily purchases. contrast this with Bitcoin that literally anyone with a cellphone can own and transact with anyone else with a phone or computer. you can hide and send any amount of Bitcoin anywhere you can write down a string of digits. as we solve the scaling problems for daily transaction type purchases it will really take off big time.
        pedrocr 9y ago
        >Bitcoin that literally anyone with a cellphone can own and transact with anyone else with a phone or computer. I doubt it's actually possible to run a full node on a phone. If you're relying on an exchange then you're not really using any special bitcoin feature. Normal internet banking to a geography that isn't screwed up would work just fine.