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I understand why there needs to be a limited amount of any currency unit. It's because currency is for conducting transactions involving resources which are al

I understand why there needs to be a limited amount of any currency unit. It's because currency is for conducting transactions involving resources which are also limited. What I don't understand is why you think scarcity implies any sort of value. You do understand that there are plenty of things that are scarce that are essentially worthless, right? As well, I'm not questioning the need for an exchange medium. I'm questioning why a certificate that says someone solved a useless math problem is a valid exchange mechanism. > Why should anyone care about your opinion on btc? Apparently you do, just not enough to be civil about it. If I had to speculate as to your motivation, I would say that it's because my point of view is dangerous to your interests. That is, if everyone thought the same as I did, BTC would be worth $0, just like I claimed in an earlier comment. You also claim I don't understand inflation, but don't care to explain it to me. Well, here it is: inflation is the result of too much money chasing too few things. That's it, nothing else. As I've mentioned, that's also the reason the price of BTC climbs relative to USD. More people want to buy BTC with USD than they did yesterday. It's as simple as that. What you don't seem to understand is that the value of a currency is relative to the things people want to buy with it. Let's illustrate the point with a hypothetical. Suppose a magical genie snaps their fingers and suddenly, everyone's USD bank balance gets multiplied by 10. What happens then? People still value the things they were buying with USD yesterday the same, so, prices will just go up by a factor of 10. You can call that the USD depreciating, or you can call it the price of goods increasing. Those things are equivalent. See, the whole problem with your argument is that BTC only has any value whatsoever with respect to USD and other currencies. With fairly limited exceptions, you can't buy things with BTC, so it's not exposed to the true value of things one would theoretically buy with it. One final question: do you take issue with my statement that the USD essentially is a blockchain-based digital currency? If so, how? If not, why bother with BTC? Oh, and you still haven't explained why BTC should be worth anything at all. I thought you were one of those "enthusiasts" who understood those things? Is there a reason you don't want to explain it to me so I can become an enthusiast as well?

chordalkeyboard 6y ago
> What I don't understand is why you think scarcity implies any sort of value. You do understand that there are plenty of things that are scarce that are essentially worthless, right? In this case, the value is as a unit of account that is (mostly) guaranteed to be, not just scarce, but have a hard limit on quantity. This links back to your first sentence, and people’s desire to be able to make several transactions or hold funds without depreciation. > As well, I'm not questioning the need for an exchange medium. I'm questioning why a certificate that says someone solved a useless math problem is a valid exchange mechanism. This also connects to your first paragraph. The simplest answer is that value is subjective and the people using it value it for that purpose. > Suppose a magical genie snaps their fingers and suddenly, everyone's USD bank balance gets multiplied by 10. What happens then? People still value the things they were buying with USD yesterday the same, so, prices will just go up by a factor of 10. You can call that the USD depreciating, or you can call it the price of goods increasing. Those things are equivalent. This is a good example. Now imagine what happens if when the genie snaps his fingers, all the white people in NY, DC, and SF have their bank balances multiplied by 10 and the rest of us don’t. What happens to prices of the things white people in ny/dc/sf buy? What happens to the profits of people who sell to them? What does the market look like for the rest of us, who are now competing with people who have 10x as much money for the same goods? Do you see now how the FED’s actions distort the economy and cause certain people to benefit to the detriment of others? > One final question: do you take issue with my statement that the USD essentially is a blockchain-based digital currency? If so, how? If not, why bother with BTC? USD are an electronic ledger but they aren’t a blockchain. BTC are desireable because of the hard cap on the number of units, which means that a person who holds BTC is protected from the risk of their currency being diluted by additional units. > Oh, and you still haven't explained why BTC should be worth anything at all. I thought you were one of those "enthusiasts" who understood those things? Is there a reason you don't want to explain it to me so I can become an enthusiast as well? Tbh I’ve explained it a few times and I’m not convinced that you’re actually interested in understanding. You’re spending a little too much time inferring things about me (incorrectly, mind you).

chordalkeyboard 6y ago

> What I don't understand is why you think scarcity implies any sort of value. You do understand that there are plenty of things that are scarce that are essentially worthless, right? In this case, the value is as a unit of account that is (mostly) guaranteed to be, not just scarce, but have a hard limit on quantity. This links back to your first sentence, and people’s desire to be able to make several transactions or hold funds without depreciation. > As well, I'm not questioning the need for an exchange medium. I'm questioning why a certificate that says someone solved a useless math problem is a valid exchange mechanism. This also connects to your first paragraph. The simplest answer is that value is subjective and the people using it value it for that purpose. > Suppose a magical genie snaps their fingers and suddenly, everyone's USD bank balance gets multiplied by 10. What happens then? People still value the things they were buying with USD yesterday the same, so, prices will just go up by a factor of 10. You can call that the USD depreciating, or you can call it the price of goods increasing. Those things are equivalent. This is a good example. Now imagine what happens if when the genie snaps his fingers, all the white people in NY, DC, and SF have their bank balances multiplied by 10 and the rest of us don’t. What happens to prices of the things white people in ny/dc/sf buy? What happens to the profits of people who sell to them? What does the market look like for the rest of us, who are now competing with people who have 10x as much money for the same goods? Do you see now how the FED’s actions distort the economy and cause certain people to benefit to the detriment of others? > One final question: do you take issue with my statement that the USD essentially is a blockchain-based digital currency? If so, how? If not, why bother with BTC? USD are an electronic ledger but they aren’t a blockchain. BTC are desireable because of the hard cap on the number of units, which means that a person who holds BTC is protected from the risk of their currency being diluted by additional units. > Oh, and you still haven't explained why BTC should be worth anything at all. I thought you were one of those "enthusiasts" who understood those things? Is there a reason you don't want to explain it to me so I can become an enthusiast as well? Tbh I’ve explained it a few times and I’m not convinced that you’re actually interested in understanding. You’re spending a little too much time inferring things about me (incorrectly, mind you).