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right, but money laundering is to take dirty dollars and convert them to clean dollars. It's not obvious to me how aggregate demand for money laundering suppor
by vasilipupkin 9y ago
right, but money laundering is to take dirty dollars and convert them to clean dollars. It's not obvious to me how aggregate demand for money laundering supports a specific price of bitcoin. If bitcoin is a mechanism for doing it, then the right metric is to look at the fees people charge for laundering money, not the amt of money laundered.
- option_greek 9y agoWith cryptocurrencies those two are tightly coupled. For example if 10mil had to be laundered in one go and the entire market cap is just 10mil or so, liquidity becomes a concern.
- DenisM 9y agoIf there are $20b waiting to be laundered and the total number of bitcoins is 20m the aggregate demand would support $1000 value of BC. This is what I would call "direct utility". There is also "indirect utility" - mindset of bystanders who are willing to transact BC because they know that others will provide liquidity.
- vasilipupkin 9y agowhy does it support $1000? if I launder 1 dollar, I buy a bitcoin and sell a bitcoin, so why does it support any particular stable value?