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It is fake in the sense that billions of dollars are being minted by crypto without any real use case other than theoretically fixing the financial system "some

It is fake in the sense that billions of dollars are being minted by crypto without any real use case other than theoretically fixing the financial system "someday". But fake stuff has always been a big part of the economy. Realtors extract 6% of most real estate transactions, but provide minimal "real" value, for example. The important thing is that inflation isn't running away and also businesses are not shutting down rapidly, causing a cascading effect of more businesses to shutdown and fire even more employees.

lotsofpulp 5y ago
> billions of dollars are being minted by crypto This makes no sense, if only because the US government is the only entity that can “mint” US dollars. More directly, just because the brokerage website says you have $x worth of an asset based on multiplying quantity of the asset times most recent sale price of a unit of that asset, unless you can trade it and deposit the cash into your account, you do not have $x.
- bubbleRefuge 5y ago
  Good point. I think the financial community has created a false sense of legitimacy for bitcoin by quoting its prices on front pages, displaying performance graphs, etc, as if BTC were as legit as stocks, bonds, and other financial instruments.
logicalmonster 5y ago
No running away inflation? According to what? CPI? Many people who live in the real world know that CPI is a garbage measure of inflation and life is increasing in price faster than they say. CPI doesn’t even measure the right thing: inflation is a monetary, not a price phenomenon. It’s not things getting more expensive, it’s the value of money growing less. But they don’t publish the m2 money stock charts any more. Wonder why?
- emkemp 5y ago
  "But they don't publish the m2 money market stock charts anymore. Wonder why?" Because they moved savings deposits into M1. So the old M1 and M2 charts are retired and replaced with M1SL and M2SL.

lotsofpulp 5y ago

> billions of dollars are being minted by crypto This makes no sense, if only because the US government is the only entity that can “mint” US dollars. More directly, just because the brokerage website says you have $x worth of an asset based on multiplying quantity of the asset times most recent sale price of a unit of that asset, unless you can trade it and deposit the cash into your account, you do not have $x.

bubbleRefuge 5y ago
Good point. I think the financial community has created a false sense of legitimacy for bitcoin by quoting its prices on front pages, displaying performance graphs, etc, as if BTC were as legit as stocks, bonds, and other financial instruments.

logicalmonster 5y ago

No running away inflation? According to what? CPI? Many people who live in the real world know that CPI is a garbage measure of inflation and life is increasing in price faster than they say. CPI doesn’t even measure the right thing: inflation is a monetary, not a price phenomenon. It’s not things getting more expensive, it’s the value of money growing less. But they don’t publish the m2 money stock charts any more. Wonder why?

emkemp 5y ago
"But they don't publish the m2 money market stock charts anymore. Wonder why?" Because they moved savings deposits into M1. So the old M1 and M2 charts are retired and replaced with M1SL and M2SL.