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Do most money managers want to buy casino chips? Is the market in chips large enough to cause the government to copy the chip market and tax the exchange of chi

Do most money managers want to buy casino chips? Is the market in chips large enough to cause the government to copy the chip market and tax the exchange of chips? Get you buy chips on all major exchanges? Visa should be worried.

arcticbull 5y ago
So this one time the entire economy of Albania imploded requiring a bail-out from the IMF because everyone got into a massive Ponzi scheme. [1] Interestingly enough, it happened at a period of serious political instability - switching over from communism to capitalism. This lack of confidence in social institutions caused people to seek refuge in snake oil salesmen. There's an awful lot of parallels in this story. Cryptocurrencies are really, super stupid currencies. They fly in the face of everything we know about modern economics. They're slow, they're expensive, they're deflationary. People don't spend deflationary things, and an economy is built on the idea of money changing hands. They're stupid assets because they're backed by nothing. They're not productive, and the biggest are negative-sum investment vehicles with value constantly skimmed off by miners. Crypto advocates are basically the anti-vaxxers of finance. If I've learned one thing from history and "Extraordinary Popular Delusions and the Madness of Crowds" it's not to underestimate this kind of insanity. So, with that in mind, let me address your question head on: > Do most money managers want to buy casino chips? I mean, most money managers in 2008 wanted people to buy mortgage-backed securities did they not? > Is the market in chips large enough to cause the government to copy the chip market and tax the exchange of chips? 85% of all trading volume is ersatz counterfeit dollars. [2] It really is an open question just how big this market actually is. If it wasn't there would be a Bitcoin ETF. This is in fact the reason there isn't one. Instead you've got Michael Saylor's next hell-ride, brought to you by the gentleman who lost more money in one day than anyone to date in 2000 when it came to light he was cooking the company books. The MicroStrategy company books. He settled for $11M. [3] [1] https://www.imf.org/external/pubs/ft/fandd/2000/03/jarvis.htm https://www.imf.org/external/pubs/ft/fandd/2000/03/jarvis.ht... [2] https://coinlib.io/coin/BTC/Bitcoin https://coinlib.io/coin/BTC/Bitcoin [3] https://www.nytimes.com/2000/12/15/business/microstrategy-chairman-accused-of-fraud-by-sec.html https://www.nytimes.com/2000/12/15/business/microstrategy-ch...
- zpeti 5y ago
  Your only legitimate point about them being really stupid is that they are slow. But this evolving and improving. It's the only hurdle to crypto having all the properties of a real currency. And it will be fixed. On the other side you have technology that has now been working for 10 years. Have scammers used it? Yes. But that doesn't mean the technology doesnt work. Is it deflationary? Yes. So was almost all currency before the 1970s. Do you stop buying TVs and electronics because they'll be cheaper in a few years? Not many people do. Deflationary currencies can work too. Well done on the ad hominem attack of crypto people being anti vaxxers though. Very good. Why not add trumper in as well? That will really scare people away.
  - deleted 5y ago
    [deleted]
  - gjulianm 5y ago
    > Is it deflationary? Yes. So was almost all currency before the 1970s. Do you have a source on that? As I recall deflation is associated with economic depressions, and from what I'm seeing it looks like the inflation rate has been almost always positive since the 40s.
  - arcticbull 5y ago
    Ok, so I disagree with everything else you posted but this is the most egregious. > Is it deflationary? Yes. So was almost all currency before the 1970s. Currency was not deflationary before the 1970s. It stopped being redeemable for gold at the end of Bretton Woods. That's not the same thing. You can see rates as high as +15% and as low as -12.5% in the early 1900s using CPI as a benchmark [1]. Gold isn't deflationary in the Austrian sense either, it continues to be mined meaning the supply continues to grow, and central banks could and in fact continue to adjust their supply. > Do you stop buying TVs and electronics because they'll be cheaper in a few years? Not many people do. Deflationary currencies can work too. That's simply not the case. [2] [1] https://www.in2013dollars.com/current-inflation-rate https://www.in2013dollars.com/current-inflation-rate [2] https://www.investopedia.com/terms/d/deflationary-spiral.asp https://www.investopedia.com/terms/d/deflationary-spiral.asp

arcticbull 5y ago

So this one time the entire economy of Albania imploded requiring a bail-out from the IMF because everyone got into a massive Ponzi scheme. [1] Interestingly enough, it happened at a period of serious political instability - switching over from communism to capitalism. This lack of confidence in social institutions caused people to seek refuge in snake oil salesmen. There's an awful lot of parallels in this story. Cryptocurrencies are really, super stupid currencies. They fly in the face of everything we know about modern economics. They're slow, they're expensive, they're deflationary. People don't spend deflationary things, and an economy is built on the idea of money changing hands. They're stupid assets because they're backed by nothing. They're not productive, and the biggest are negative-sum investment vehicles with value constantly skimmed off by miners. Crypto advocates are basically the anti-vaxxers of finance. If I've learned one thing from history and "Extraordinary Popular Delusions and the Madness of Crowds" it's not to underestimate this kind of insanity. So, with that in mind, let me address your question head on: > Do most money managers want to buy casino chips? I mean, most money managers in 2008 wanted people to buy mortgage-backed securities did they not? > Is the market in chips large enough to cause the government to copy the chip market and tax the exchange of chips? 85% of all trading volume is ersatz counterfeit dollars. [2] It really is an open question just how big this market actually is. If it wasn't there would be a Bitcoin ETF. This is in fact the reason there isn't one. Instead you've got Michael Saylor's next hell-ride, brought to you by the gentleman who lost more money in one day than anyone to date in 2000 when it came to light he was cooking the company books. The MicroStrategy company books. He settled for $11M. [3] [1] https://www.imf.org/external/pubs/ft/fandd/2000/03/jarvis.htm https://www.imf.org/external/pubs/ft/fandd/2000/03/jarvis.ht... [2] https://coinlib.io/coin/BTC/Bitcoin https://coinlib.io/coin/BTC/Bitcoin [3] https://www.nytimes.com/2000/12/15/business/microstrategy-chairman-accused-of-fraud-by-sec.html https://www.nytimes.com/2000/12/15/business/microstrategy-ch...

zpeti 5y ago
Your only legitimate point about them being really stupid is that they are slow. But this evolving and improving. It's the only hurdle to crypto having all the properties of a real currency. And it will be fixed. On the other side you have technology that has now been working for 10 years. Have scammers used it? Yes. But that doesn't mean the technology doesnt work. Is it deflationary? Yes. So was almost all currency before the 1970s. Do you stop buying TVs and electronics because they'll be cheaper in a few years? Not many people do. Deflationary currencies can work too. Well done on the ad hominem attack of crypto people being anti vaxxers though. Very good. Why not add trumper in as well? That will really scare people away.
- deleted 5y ago
  [deleted]
- gjulianm 5y ago
  > Is it deflationary? Yes. So was almost all currency before the 1970s. Do you have a source on that? As I recall deflation is associated with economic depressions, and from what I'm seeing it looks like the inflation rate has been almost always positive since the 40s.
- arcticbull 5y ago
  Ok, so I disagree with everything else you posted but this is the most egregious. > Is it deflationary? Yes. So was almost all currency before the 1970s. Currency was not deflationary before the 1970s. It stopped being redeemable for gold at the end of Bretton Woods. That's not the same thing. You can see rates as high as +15% and as low as -12.5% in the early 1900s using CPI as a benchmark [1]. Gold isn't deflationary in the Austrian sense either, it continues to be mined meaning the supply continues to grow, and central banks could and in fact continue to adjust their supply. > Do you stop buying TVs and electronics because they'll be cheaper in a few years? Not many people do. Deflationary currencies can work too. That's simply not the case. [2] [1] https://www.in2013dollars.com/current-inflation-rate https://www.in2013dollars.com/current-inflation-rate [2] https://www.investopedia.com/terms/d/deflationary-spiral.asp https://www.investopedia.com/terms/d/deflationary-spiral.asp