4 ms·
The case for crypto in one chart: https://fred.stlouisfed.org/series/WM2NS https://fred.stlouisfed.org/series/WM2NS Nothing can grow exponentially forever. A
by kloch 5y ago
The case for crypto in one chart:
https://fred.stlouisfed.org/series/WM2NS https://fred.stlouisfed.org/series/WM2NS
Nothing can grow exponentially forever. Any guesses as to when this chart goes to singularity?
It turns out humans are just not good at running their own money supply. This has been true throughout history, even with a gold standard as coins were frequently debased. In current times, this chart of federal reserve assets is illustrative of the current environment:
https://fred.stlouisfed.org/series/RESPPANWW https://fred.stlouisfed.org/series/RESPPANWW
The growth in that chart since 2008 is new money that was created not by banks making temporary loans but by the central bank outright printing new money and injecting it into the economy (QE). If the FED balance sheet shrinks the stock market will crash and there will be irresistible political pressure to do more QE.
- go_elmo 5y agoWhile your statement is true, the universe is so big, that exponential growth at our (increasing) rate is still possible for many, many millenia (assuming no apocalypse scenario). Apart from that, money is inflationary by design.
- yunohn 5y ago> the universe is so big I probably missed the memo on humans becoming an interplanetary species, but I didn’t know that we’d also become intergalactic.
- BenoitEssiambre 5y agoInflation and money growth is by design as I explained here (and elsewhere in this thread): https://benoitessiambre.com/specter.html https://benoitessiambre.com/specter.html . It's really about avoiding the bad equilibrium where everyone hoards tokens and few invest in building things to buy with these tokens (which happened during the Great Depression with gold tied currencies).
- csdvrx 5y agoWhich you could say is exactly what happens with the altcoins, then also for technical reasons: when the one crypto that first was didn't do what a young russian bord canadian wanted to do, a very different one got made. AND A BUNCH OF OTHERS NOW! It's as if the market responded to not being provided with what it wanted (in terms of affordability or features) responded in a way where hoarders got fully circumvented...
- vanusa 5y agoAny guesses as to when this chart goes to singularity? Actually, an exponential curve can go forever before it reaches a singularity. Because, you know, "math". Not to say that over-reliance on QE isn't a problem. But it does sound like you're whipping out (scary-sounding) buzzwords (like "singularity") without understanding what they mean.