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I love it. It's just like all these MLM (Pyramid schemes) that have been reborn. I guess every generation has to relearn the lessons of the prior generations th
by justherefortart 8y ago
I love it. It's just like all these MLM (Pyramid schemes) that have been reborn. I guess every generation has to relearn the lessons of the prior generations the hard way.
Comparing a nation's fiat to bitcoin is hilarious.
Here's what the USD is backed by. The nation's assets. And more importantly the nation's power to enforce their will upon you legally (via courts, police, military, etc.).
- paulsutter 8y agoActually the USD is backed by trading volumes. The courts, police, and military have little leverage over forex markets. The Federal Reserve has been a fair steward of the dollar, with only a 96% devaluation since 1913. The curious can check the official numbers here: https://data.bls.gov/cgi-bin/cpicalc.pl https://data.bls.gov/cgi-bin/cpicalc.pl
- dustingetz 8y agothe military actually has quite a huge amount of influence over forex markets why do you think we invest in it? https://www.quora.com/Why-is-oil-priced-and-traded-in-U-S-dollars https://www.quora.com/Why-is-oil-priced-and-traded-in-U-S-do...
- deleted 8y ago[deleted]
- marcell 8y agoNot sure if being backed by coercive force is a positive or negative :). For a reference point, gold is another sovereign asset and it has held up pretty well over the years.
- contoraria 8y agoI'm still assuming that gold has intrinsic technical value, only not directly to everyone, obviously. In the same vain, I guess the blockchain must have some inherent value, it's data after all, the gold of this century, and data concerning sha hashes at that. But from a glance I couldn't figure out how to use that as rainbow table or anything else.
- cfadvan 8y agoThe vast majority of the value of gold (more than 70%) is purely for jewelry. There is no shortage of gold for its technical uses, and if gold were no longer desirable for aesthetic purposes, there would be an enormous glut. By contrast platinum’s price is more dependent on its industrial use as a catalyst.
- notoriousjpg 8y agoIsn't it moreso backed by our collective belief in it? Taking a leaf (or ten) from Sapiens here
- asdsa5325 8y agoIt's not really a "belief", it's backed by the real things you can do with it. For example, if your currency is accepted by any real estate agent, your currency has real value far beyond belief, since property has real value in our society. This is what cryptocurrency lacks, and why it's value is overstated.
- cfadvan 8y agoMost people don’t study history (or don’t learn its lessons) and as the saying goes, are doomed to repeat it. I think it’s worth remember ping that plenty, whatever they say publicly, are just trying to get rich and don’t really care how. $30million from exploiting the next fool spends just like any other money, as long as you’re not the last fool.
- deleted 8y ago[deleted]
- koonsolo 8y agoSo I guess you didn't study the history of fiat https://echobtg.com/fiat-currency-graveyard-a-history-of-monetary-folly/ https://echobtg.com/fiat-currency-graveyard-a-history-of-mon... https://steemit.com/money/@fluffy/fiat-currency-a-history-of-fail https://steemit.com/money/@fluffy/fiat-currency-a-history-of...
- cfadvan 8y agoSo I guess you didn't study the history of fiat... ...As written by two Blockchain sites. Ya got me.
- koonsolo 8y agoYou're shooting at the source, not the content.
- cfadvan 8y ago“Consider the source.” Not to mention that the “conent” opening with “printing money is wealth theft” isn’t worth the time it took to read, never mind responding to it.
- koonsolo 8y agoI just wanted to show you a quick glance over the history of fiat money, and what happened after 2008 to the dollar. > Most people don’t study history (or don’t learn its lessons) and as the saying goes, are doomed to repeat it. Have a nice day.
- koonsolo 8y agoGreat comment! Can I send you 0.001 Euro for this? Oh no wait, I can't. Do you accept the Nano cryptocurrency? Welcome to the new world, were fiat will be an old dinosaur living in a digital world (and yes, I said world, not nation)
- justherefortart 8y agoYou seem to be taking this personally. It's quite funny.
- menotyou 8y agoNo, actually a currency is not backed by a nations assets. It is backed by the obligation to pay your taxes in that currency. I.e. every citizen with tax obligation (i.e. basically everybody) needs to collect Dollars to pay his tax bill. So everybody is willing to accept payments in that currency or in a currency which can be reasonably easy converted to Dollars. As a topper sales tax creates a tax obligation on virtually all transactions within the society, so the need to own Dollars is directly bound to economic activity.
- bmh_ca 8y ago> It is backed by the obligation to pay your taxes in that currency. If it's a reserve currency, as the U.S. is, it is also backed by the demand of other states to hold U.S. dollars to stabilize their non-reserve currency. Indeed, some argue that a reserve currency is not subject to ordinary balance of payments criteria. This is sometimes called exorbitant privilege.[1] All to say, the U.S. currency is not just backed by assets of the nation, but by demand that other states have for local-currency stability. Somewhat aside, some argue that this creates a perverted incentive to destabilize the world because unstable states and regions have a higher demand for a reserve currency. [1] https://en.wikipedia.org/wiki/Exorbitant_privilege https://en.wikipedia.org/wiki/Exorbitant_privilege