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That's why planned economies work so well, right?
by darawk 8y ago
That's why planned economies work so well, right?
- spookthesunset 8y agoObviously there is a happy gray between completely black and completely white.
- Barrin92 8y agocentrally planned economies do not work well, but the focus here lies on the word 'central', not 'planned'. All economies are planned to a significant degree, albeit in corporations (which internally do plan rather than rely on market mechanisms). The equivalent of cryptocurrencies in the economic sphere would be turning every company into an army of independent individual contractors whose only tool is the legal contract. This would lead to unmanageable complexity and overhead that would be unacceptable and very soon end in people naturally organizing in competent hierarchies, producing the dreaded institutions and middlemen that cryptocurrency tries to do away with. Read for this very question Coase's essay, The Nature of the Firm.
- darawk 8y agoI've read Coase. The equivalent of cryptocurrencies in the economic sphere would be exactly what cryptocurrencies are: partially decentralized. Firms form due to the transaction costs of decentralization. Mining pools form due to the transaction costs of decentralization.
- cryptobeanbaby 8y agoMining pools form due to the transaction costs of decentralization. Better explained as a result of the mining protocol being winner takes all, and is granted write access authority (for guessing a increasingly larger random number), that by pooling everyone's lottery tickets together and paying the pool operator, the agree to take a small sum of each successful guess from the pool (assuming the pool fairly pays out participants). "decentralized" except not.
- darawk 8y agoVariance is a transaction cost.