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This is easy to refute for crypto fans. In your scenario, a third-party prints $159,600 USD. (aka inflation, government deficit/debt, quantitative easing...).
by howeyc 9y ago
This is easy to refute for crypto fans.
In your scenario, a third-party prints $159,600 USD. (aka inflation, government deficit/debt, quantitative easing...).
Time will tell who's right.
- notyourday 9y agoIt does not. We have defined a totality of the market. Since it does not fit crypto-nutcases view of the world, they come up with the slogans: QE! Fiat! Inflation! Do you at least accept that in the market described above coin value is fictitious as soon as totality of the market is value for coins is higher than $400? [late edit]: Do note that it is not to mean that there's no money to be made before the collapse - there are tons of fools who are willing to part with it. That's why financial firms are starting to salivate looking at it.
- jstanley 9y agoTry switching the labels "USD" and "BTC" and try to work out where your argument breaks down. When one person buys 1 USD for 400 BTC, that means the 400 USD is worth 160,000 BTC, but where are all the BTCs? If that's not a good argument against the US dollar's viability as a currency (and it's not!) then your version is also not a good argument against Bitcoin's viability as a currency.
- notyourday 9y agoWhen goods and services start being quoted in BTC you would have that argument.
- jstanley 9y agoThere are no goods and services inside your model. There are only 2 currencies. Your assertion that the exchange rate is bogus because it is possible to buy 1 BTC for $400 applies just as well in the opposite direction.
- notyourday 9y agoExcept that we have never seen that happen.
- jstanley 9y agoWhat does that even mean? Was your $400 + 400 BTC model supposed to be an argument from first principles, or was it supposed to be a reference to some empirical evidence? I don't think you're being as intellectually honest in this thread as you could be.
- notyourday 9y agoOk, that was a cheap shot, I agree. I am, however, yet to see a single article talking about USD being quoted in bitcoin. Just like I do not see any articles of USD being quoted in Samsung TVs. I do see bitcoin being quoted in USD. I see USD being quoted in Euros and I see Euros being quoted in USD. That's why Sansung TVs and BTCs are not currency while USD and Euros are. So BTC is asset. Assets in an non-liquid markets are prone to enormous bubbles.
- npongratz 9y ago> ... crypto-nutcases view of the world ... I'd suggest that discussing your point without the ad hominems makes for a stronger argument.
- twayamznacct 9y agoKinda like how a third-party prints USDT in the cryptocurrency case ;)