3 ms·

You can transact Bitcoin on the Lightning Network for near-0 cost. Scarcity is arguably the most desirable property of money since it ensures the store of value

by arbawk 6y ago

You can transact Bitcoin on the Lightning Network for near-0 cost. Scarcity is arguably the most desirable property of money since it ensures the store of value property. That's why gold was chosen over other precious metals. Bitcoin is a significant upgrade to the dollar. Try sending $1B from the U.S. to Europe and compare transaction time and costs vs. BTC.

epx 6y ago
Why should $1B transfers be easy and free? And how many of these has anyone here made in the course of their lives? :)
- alangibson 6y ago
  $1B is a silly benchmark, but in principle cheaper is always better when it comes to transactions I would think.
alangibson 6y ago
Gold was chosen not because it's rare (it's not, compared to many other metals) but because it's pretty and inert. Scarcity is not a desirable property of money if you like economic activity. There's a reason why we dump it in the economy when there's a downturn.
- arbawk 6y ago
  Its stock-to-flow ratio is the highest among metals, it is also divisible (although not easily), durable, portable, etc. which all make it desirable. However it's worse in most of these categories when compared to Bitcoin. Scarcity is a desirable property of money unless you like the Cantillon Effect. https://en.wikipedia.org/wiki/Richard_Cantillon#Monetary_theory https://en.wikipedia.org/wiki/Richard_Cantillon#Monetary_the... Early monies like shells were often abandoned when a new supply was found as it allowed for precisely this re-allocation of wealth before re-pricing occurred. If you'd like to see where money was dumped into the economy endlessly, you can look at Weimar Germany and the value of its currency thereafter. https://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_Republic https://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_R...

3 ms·

You can transact Bitcoin on the Lightning Network for near-0 cost. Scarcity is arguably the most desirable property of money since it ensures the store of value

by arbawk 6y ago

epx 6y ago
Why should $1B transfers be easy and free? And how many of these has anyone here made in the course of their lives? :)
- alangibson 6y ago
  $1B is a silly benchmark, but in principle cheaper is always better when it comes to transactions I would think.
alangibson 6y ago
Gold was chosen not because it's rare (it's not, compared to many other metals) but because it's pretty and inert. Scarcity is not a desirable property of money if you like economic activity. There's a reason why we dump it in the economy when there's a downturn.
- arbawk 6y ago
  Its stock-to-flow ratio is the highest among metals, it is also divisible (although not easily), durable, portable, etc. which all make it desirable. However it's worse in most of these categories when compared to Bitcoin. Scarcity is a desirable property of money unless you like the Cantillon Effect. https://en.wikipedia.org/wiki/Richard_Cantillon#Monetary_theory https://en.wikipedia.org/wiki/Richard_Cantillon#Monetary_the... Early monies like shells were often abandoned when a new supply was found as it allowed for precisely this re-allocation of wealth before re-pricing occurred. If you'd like to see where money was dumped into the economy endlessly, you can look at Weimar Germany and the value of its currency thereafter. https://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_Republic https://en.wikipedia.org/wiki/Hyperinflation_in_the_Weimar_R...