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Real world economy is a kind of a ponzi scheme, in my opinion. With the central bank being at the top, and other banks below it, followed by the financial secto

by hasenj 15y ago

Real world economy is a kind of a ponzi scheme, in my opinion. With the central bank being at the top, and other banks below it, followed by the financial sector, and all the people who become rich by "speculating" on money instead of actually producing something useful EDIT: Please read this in context before you downvote. We're talking about bitcoin. If bitcoin is a kind of a Ponzi scheme, then it's no different from the "scheme" present in the current monetary system.

hugh3 15y ago
That's not really how the real world economy works. The real world economy is all about people producing and consuming things. Banks, even central banks, are just a thin layer of icing on top of the cake.
- Canada 15y ago
  That is not true. They get to issue new money and decide who gets to spend that new money before the circulation of that new money causes general prices to raise. Those who get the new money first live at the expense of those who don't. The central bank doesn't need to produce anything to create this new money.
- plainOldText 15y ago
  Sure it is about producing and consuming things. No one can argue about that. But remember that we don't exchange goats for cows, and milk for banana juice anymore. You produce things because you believe you will make enough money so you can then buy something else with it. So you can regard money as an intermediary economic good which everybody wants. The problem however is that some participants to this market, like the central bank for example, get to have access to virtually unlimited supplies of money, which puts you at great disadvantage.
plainOldText 15y ago
I agree with you. However you have to realize that whenever you make such controversial statements (controversial with respect to mainstream view) you will get downvoted, because people don't like to have their worldview shaken, and their orderly views disrupted. For most people it is much easier to accept something based on what it appears to be than to think of what it truly is. Also, unlike the current monetary system in USA and most of other countries, the bitcoin network has no central control and after a certain point no more currency will be produced. In contrast, in the current monetary system more money gets pumped as needed.

by hasenj 15y ago

hugh3 15y ago

That's not really how the real world economy works. The real world economy is all about people producing and consuming things. Banks, even central banks, are just a thin layer of icing on top of the cake.

Canada 15y ago
That is not true. They get to issue new money and decide who gets to spend that new money before the circulation of that new money causes general prices to raise. Those who get the new money first live at the expense of those who don't. The central bank doesn't need to produce anything to create this new money.
plainOldText 15y ago
Sure it is about producing and consuming things. No one can argue about that. But remember that we don't exchange goats for cows, and milk for banana juice anymore. You produce things because you believe you will make enough money so you can then buy something else with it. So you can regard money as an intermediary economic good which everybody wants. The problem however is that some participants to this market, like the central bank for example, get to have access to virtually unlimited supplies of money, which puts you at great disadvantage.

plainOldText 15y ago

I agree with you. However you have to realize that whenever you make such controversial statements (controversial with respect to mainstream view) you will get downvoted, because people don't like to have their worldview shaken, and their orderly views disrupted. For most people it is much easier to accept something based on what it appears to be than to think of what it truly is. Also, unlike the current monetary system in USA and most of other countries, the bitcoin network has no central control and after a certain point no more currency will be produced. In contrast, in the current monetary system more money gets pumped as needed.