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Bitcoin has all of the problems listed in the article and is, arguably, not yet providing the social value that blockchain could. Not sure how a high market ca

by floo 6y ago

Bitcoin has all of the problems listed in the article and is, arguably, not yet providing the social value that blockchain could. Not sure how a high market cap is a counter argument to that.

genericacct 6y ago
Especially considering market cap is a totally made up number and if everybody tried to get out at once they would get a fraction of a fraction of it. (1) But it's pointless to tell this to a cryptofreak because they're so heavily invested in it they make zealots look reasonable. (1) not to mention the fact that as soon as there is volatility exchange sites go down, even the bigger ones.
- RurouniK 6y ago
  Wait until you find out what happens when people try to take out their money all at once from banks... I remember back in the day when people used to call early internet users internetfreaks and zealots. Now it's the same with Bitcoin. Whatever...
  - janoc 6y ago
    Yes, we all remember well what happened e.g. with Mt Gox. Not sure what your point here is - as if panic and runs on the banks were somehow magically prevented by crypto.
    - AngrySkillzz 6y ago
      And the hilarious part is, we actually have regulations like capital requirements and FDIC insurance and central bank lenders-of-last-resort to prevent bank runs? Whereas crypto has... none of that? And unaudited Tether pumping >$1B into the crypto ecosystem every week
- seibelj 6y ago
  If everyone tried to get out of any asset at once the price would tank. That’s how markets work.
RurouniK 6y ago
The market cap is a counter argument because it shows the trust people, and lately corporations put into Bitcoin as a store of wealth and a hedge against inflation. The market cap proves that bitcoin/blockchain/cryptocurrency enthusiasts put their money where their mouth is.
- bildung 6y ago
  I hardly doubt you'll find any enconomist working in those corporations fearing inflation. Inflation has been a non-issue since the 1980s. https://en.wikipedia.org/wiki/United_States_Consumer_Price_Index#/media/File:US_Consumer_Price_Index_Graph.svg https://en.wikipedia.org/wiki/United_States_Consumer_Price_I...
  - andreaorru 6y ago
    And yet... https://wtfhappenedin1971.com https://wtfhappenedin1971.com
    - bildung 6y ago
      That page reminds me a bit of time cube :) Here is a good introductory article about the topic: https://slatestarcodex.com/2019/02/25/wage-stagnation-much-more-than-you-wanted-to-know/ https://slatestarcodex.com/2019/02/25/wage-stagnation-much-m... TL;DR: Inflation plays at most a secondary role, the majority of the effect is a result of stagnant real wages, i.e. the capital owners kept a larger share of the productivity gains.
      - andreaorru 6y ago
        Thanks, that looks amazing. It's gonna take me a while to digest it though. :) Does the article conclude that the correlation with the US going off the gold standard, and consequent change in monetary policy, is completely spurious?
        bildung 6y ago

by floo 6y ago

Bitcoin has all of the problems listed in the article and is, arguably, not yet providing the social value that blockchain could. Not sure how a high market cap is a counter argument to that.

genericacct 6y ago

Especially considering market cap is a totally made up number and if everybody tried to get out at once they would get a fraction of a fraction of it. (1) But it's pointless to tell this to a cryptofreak because they're so heavily invested in it they make zealots look reasonable. (1) not to mention the fact that as soon as there is volatility exchange sites go down, even the bigger ones.

RurouniK 6y ago
Wait until you find out what happens when people try to take out their money all at once from banks... I remember back in the day when people used to call early internet users internetfreaks and zealots. Now it's the same with Bitcoin. Whatever...
- janoc 6y ago
  Yes, we all remember well what happened e.g. with Mt Gox. Not sure what your point here is - as if panic and runs on the banks were somehow magically prevented by crypto.
  - AngrySkillzz 6y ago
    And the hilarious part is, we actually have regulations like capital requirements and FDIC insurance and central bank lenders-of-last-resort to prevent bank runs? Whereas crypto has... none of that? And unaudited Tether pumping >$1B into the crypto ecosystem every week
seibelj 6y ago
If everyone tried to get out of any asset at once the price would tank. That’s how markets work.

RurouniK 6y ago

The market cap is a counter argument because it shows the trust people, and lately corporations put into Bitcoin as a store of wealth and a hedge against inflation. The market cap proves that bitcoin/blockchain/cryptocurrency enthusiasts put their money where their mouth is.

bildung 6y ago
I hardly doubt you'll find any enconomist working in those corporations fearing inflation. Inflation has been a non-issue since the 1980s. https://en.wikipedia.org/wiki/United_States_Consumer_Price_Index#/media/File:US_Consumer_Price_Index_Graph.svg https://en.wikipedia.org/wiki/United_States_Consumer_Price_I...
- andreaorru 6y ago
  And yet... https://wtfhappenedin1971.com https://wtfhappenedin1971.com
  - bildung 6y ago
    That page reminds me a bit of time cube :) Here is a good introductory article about the topic: https://slatestarcodex.com/2019/02/25/wage-stagnation-much-more-than-you-wanted-to-know/ https://slatestarcodex.com/2019/02/25/wage-stagnation-much-m... TL;DR: Inflation plays at most a secondary role, the majority of the effect is a result of stagnant real wages, i.e. the capital owners kept a larger share of the productivity gains.
    - andreaorru 6y ago
      Thanks, that looks amazing. It's gonna take me a while to digest it though. :) Does the article conclude that the correlation with the US going off the gold standard, and consequent change in monetary policy, is completely spurious?
      - bildung 6y ago