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>you can't create value out of thin air Wait, we are creating currency, not value. Do you know how the federal reserve works? It puts more money into the syste

>you can't create value out of thin air Wait, we are creating currency, not value. Do you know how the federal reserve works? It puts more money into the system from nowhere. >Bitcoin is useless, you can't do anything with it You can buy things with it, that is the point of money. The more it is adopted, the more you will be able to buy.

alexasmyths 9y ago
" we are creating currency, not value" + The point of any new tool or innovation is to add value. Without currency, we could not have an economy, ergo, currency creates value. + "Do you know how the federal reserve works? It puts more money into the system from nowhere." This is false and misleading. The Fed exchanges TBils for USD. It pulls one kind of asset off the market, and exchanges it with another, which is more liquid. It does this with specific objectives in mind. "You can buy things with it, that is the point of money." You can't buy jack with BTC. It can be used as a currency, but it is not, and never will be.
- analog31 9y ago
  Without currency, we could not have an economy, ergo, currency creates value. In my view, this is a huge point. I hope this doesn't sound like quibbling, but I would expand the point by speculating that the functioning of a money system influences the overall prosperity of an economy. In other words, one economy could be more prosperous than another, simply based on which one has a "better" money system. In addition, like any other technology, people will use whatever money system is available to them, that works best for what they want to do. In countries with dysfunctional money systems, people try to move their wealth into assets that are denominated in dollars, euro's, or something like that. If someone doesn't believe that their local money, or dollars, will function for them under some scenario, they might move to bitcoins or gold. I suspect that bitcoins could fill in that void for some people. We don't know what our economy would look like without the major government money systems as they currently function.

alexasmyths 9y ago

" we are creating currency, not value" + The point of any new tool or innovation is to add value. Without currency, we could not have an economy, ergo, currency creates value. + "Do you know how the federal reserve works? It puts more money into the system from nowhere." This is false and misleading. The Fed exchanges TBils for USD. It pulls one kind of asset off the market, and exchanges it with another, which is more liquid. It does this with specific objectives in mind. "You can buy things with it, that is the point of money." You can't buy jack with BTC. It can be used as a currency, but it is not, and never will be.

analog31 9y ago
Without currency, we could not have an economy, ergo, currency creates value. In my view, this is a huge point. I hope this doesn't sound like quibbling, but I would expand the point by speculating that the functioning of a money system influences the overall prosperity of an economy. In other words, one economy could be more prosperous than another, simply based on which one has a "better" money system. In addition, like any other technology, people will use whatever money system is available to them, that works best for what they want to do. In countries with dysfunctional money systems, people try to move their wealth into assets that are denominated in dollars, euro's, or something like that. If someone doesn't believe that their local money, or dollars, will function for them under some scenario, they might move to bitcoins or gold. I suspect that bitcoins could fill in that void for some people. We don't know what our economy would look like without the major government money systems as they currently function.