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You mean that there is a cap on the supply that cannot keep pace with the growth of the real economy?

noxer 7y ago
The cap is irrelevant. Instead of printing more the value per unit goes up in the end it does the same it adjust for growth just fine. It's just not practical for a fiat currency to change it's value depending on the economy situation. If for example the USD would have a fix cap and its value would swing with the economy, people would speculate with it. At peaks everyone would want to buy and at the lows everyone would pay salaries and debs etc. the growth isn't the problem the swings and uncertainty about the value makes it unusable for a currency. Bitcoin doesn't have this problem is kinda like gold no one really want to pay with it (beside the bitcoin maxis).
- this_user 7y ago
  You sound like you know nothing about how currencies actually work. Both exchange rate and purchasing power of the USD do change over time. People do speculate with currencies. And the cap is absolutely not irrelevant if you were to have a global Bitcoin economy. The US would not be able to set the prices on its own, and those would instead be determined by the global market forces. This means the country loses and and all ability to do monetary policy.
  - noxer 7y ago
    No one care what you think I know or don't know bring arguments that support your opinion. Whats the mcap of USD? Whats the mcap of EUR? Whats the mcap of Gold? Why does no one know exactly? Because It's irrelevant meaningless and basically impossible to know because of lost units and secret holdings (in case of gold) Ofc people speculate with currencies but not the average joe, whos supposed to use it as a medium of exchange. And that's the whole point. Small fluctuations or small inflation doesn't matter for its use as medium of exchange. The whole "global bitcoin economy" thing wasm't the topic of my post no clue why you tell me this. Also the price of btc is already determined by "global market force" if you wanna call it that way. although it has not much to do with any other market. It's just supply and demand that make the price.
    - account73466 7y ago
      >> Whats the mcap of USD? Start here https://fred.stlouisfed.org/graph/?id=CURRSL https://fred.stlouisfed.org/graph/?id=CURRSL, and here https://fredblog.stlouisfed.org/2014/09/how-much-money-is-the-fed-printing/?utm_source=series_page&utm_medium=related_content&utm_term=related_resources&utm_campaign=fredblog https://fredblog.stlouisfed.org/2014/09/how-much-money-is-th... The currency component of USD doubles every 10 years.
      - noxer 7y ago
        I didn't ask for the mcap of USD. It was a rhetoric question. Ofc you can find numbers and statistics about it. But they are obviously not correct as stated above they do not include any lost money. Also the value is meaningless. Not a single person on this planet does any educated decision based on that value. It's completely irrelevant. And that was my whole point. If you trade fiat/precious metal or similar assets no chart will ever show the mcap of said asset. But somehow bitcoin and crypto included that value. The only obvious reason that this is a thing, seems to be because crypto space was created by people who have no clue about "money" or how irrelevant the mcap is for these assets.
        account73466 7y ago
        Read again "The currency component of USD doubles every 10 years." Therefore, "they do not include any lost money" is irrelevant unless you believe people lose about half of their money over a single decade "Not a single person on this planet does any educated decision based on that value. It's completely irrelevant. And that was my whole point." That is false. Smartest people do take into account the fact that the market cap of USD doubles every decade. Printed money have to go somewhere, they do go in US stocks with the smallest loss on the way. Therefore, US stocks also double every decade. Therefore, it does not make sense to search for investments which deliver less than 8% a year since you are basically losing money relatively to the actual total amount. >> If you trade fiat/precious metal or similar assets no chart will ever show the mcap of said asset. Seems like you never traded in your life. First, look at Interactive Brokers, the most popular retail platform. For any stock you click, you see its market cap. Investor do invest differently depending on whether it is large cap or low cap. Google it, learn something. Even Yahoo Finance shows market cap. You basically have no clue what you are talking about. Not need to reply, you are wasting my time. Cheers.

The cap is irrelevant. Instead of printing more the value per unit goes up in the end it does the same it adjust for growth just fine. It's just not practical for a fiat currency to change it's value depending on the economy situation. If for example the USD would have a fix cap and its value would swing with the economy, people would speculate with it. At peaks everyone would want to buy and at the lows everyone would pay salaries and debs etc. the growth isn't the problem the swings and uncertainty about the value makes it unusable for a currency. Bitcoin doesn't have this problem is kinda like gold no one really want to pay with it (beside the bitcoin maxis).

this_user 7y ago
You sound like you know nothing about how currencies actually work. Both exchange rate and purchasing power of the USD do change over time. People do speculate with currencies. And the cap is absolutely not irrelevant if you were to have a global Bitcoin economy. The US would not be able to set the prices on its own, and those would instead be determined by the global market forces. This means the country loses and and all ability to do monetary policy.
- noxer 7y ago
  No one care what you think I know or don't know bring arguments that support your opinion. Whats the mcap of USD? Whats the mcap of EUR? Whats the mcap of Gold? Why does no one know exactly? Because It's irrelevant meaningless and basically impossible to know because of lost units and secret holdings (in case of gold) Ofc people speculate with currencies but not the average joe, whos supposed to use it as a medium of exchange. And that's the whole point. Small fluctuations or small inflation doesn't matter for its use as medium of exchange. The whole "global bitcoin economy" thing wasm't the topic of my post no clue why you tell me this. Also the price of btc is already determined by "global market force" if you wanna call it that way. although it has not much to do with any other market. It's just supply and demand that make the price.
  - account73466 7y ago
    >> Whats the mcap of USD? Start here https://fred.stlouisfed.org/graph/?id=CURRSL https://fred.stlouisfed.org/graph/?id=CURRSL, and here https://fredblog.stlouisfed.org/2014/09/how-much-money-is-the-fed-printing/?utm_source=series_page&utm_medium=related_content&utm_term=related_resources&utm_campaign=fredblog https://fredblog.stlouisfed.org/2014/09/how-much-money-is-th... The currency component of USD doubles every 10 years.
    - noxer 7y ago
      I didn't ask for the mcap of USD. It was a rhetoric question. Ofc you can find numbers and statistics about it. But they are obviously not correct as stated above they do not include any lost money. Also the value is meaningless. Not a single person on this planet does any educated decision based on that value. It's completely irrelevant. And that was my whole point. If you trade fiat/precious metal or similar assets no chart will ever show the mcap of said asset. But somehow bitcoin and crypto included that value. The only obvious reason that this is a thing, seems to be because crypto space was created by people who have no clue about "money" or how irrelevant the mcap is for these assets.
      - account73466 7y ago
        Read again "The currency component of USD doubles every 10 years." Therefore, "they do not include any lost money" is irrelevant unless you believe people lose about half of their money over a single decade "Not a single person on this planet does any educated decision based on that value. It's completely irrelevant. And that was my whole point." That is false. Smartest people do take into account the fact that the market cap of USD doubles every decade. Printed money have to go somewhere, they do go in US stocks with the smallest loss on the way. Therefore, US stocks also double every decade. Therefore, it does not make sense to search for investments which deliver less than 8% a year since you are basically losing money relatively to the actual total amount. >> If you trade fiat/precious metal or similar assets no chart will ever show the mcap of said asset. Seems like you never traded in your life. First, look at Interactive Brokers, the most popular retail platform. For any stock you click, you see its market cap. Investor do invest differently depending on whether it is large cap or low cap. Google it, learn something. Even Yahoo Finance shows market cap. You basically have no clue what you are talking about. Not need to reply, you are wasting my time. Cheers.