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It's because it's an established technology that only attracts speculation and scams because it detaches the creation of capital from the utilization of labor a
by andrewmcwatters 5y ago
It's because it's an established technology that only attracts speculation and scams because it detaches the creation of capital from the utilization of labor and production and replaces it with hardware.
It's a fundamentally "wrong" currency in that you cannot request labor in exchange for debt. Instead you can request labor in exchange for waiting for a machine to generate the value of labor.
People say, well that's great, because no one wants debt. Except you do. You do want debt to exist in the world, because you want people to have an incentive to make things and do things versus not making things and doing things.
It makes no sense. It's mass appeal is driven by the fact that one person exchanges fiat to another person in exchange for the currency itself in larger price to fiat over time.
I think it's actually somewhat sustainable nonsense too, because people really think you can dollar cost average it. And if you have it and need to actually buy something with it, you are only incentivized to ask for more fiat in exchange for it, because people will buy it for strange reasons like simple moving average.
It's not a good currency, because it's not price stable, and it's not a good investment, since there's no underlying or relational value associated with it. So what is it?
- glitchc 5y agoIt seems like this comment appears in every Bitcoin post. I get a deja vu feeling when I read it. To the OP, is this copy-pasted to every new BTC post? Truly curious.
- andrewmcwatters 5y agoNo, it's not copypasta. If you consistently hear this from other people, I would reflect on it, then.
- randomhodler84 5y agoYou have bought into the debt argument, and loose money. I like hard money. Infinity / 21M
- andrewmcwatters 5y agoThen you don't understand how currencies work today. It's like saying we should go back to the gold standard. It makes no sense. Labor capacity increases as population grows. Gold does not grow. Should we all exchange slivers of gold? No. That would be nonsensical.
- randomhodler84 5y ago“We should adopt a bitcoin standard”. It will end all wars; bring freedom, peace and prosperity to the planet. I don’t think we should go back to physical element based scarcity to measure wealth, the asteroids are full of it. What nothing else in the universe is full of is nonces for near hash collisions in SHA256. That’s as good or better than any other way to secure the ledger.
- CryptoPunk 5y agoThe money supply grew under the gold standard, via debt-based money creation and fractional reserve banking. The currency shortages and depressions of the gold standard era were due to government intervention in banking, not gold backing of currency: https://www.alt-m.org/2015/06/04/ten-things-every-economist-should-know-about-the-gold-standard-2/ https://www.alt-m.org/2015/06/04/ten-things-every-economist-...