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>>It's kind of wild to me that crypto has caused some people be to pro arbitrage. Arbitrage is the most inefficient form economic rent because it is a tax on pr

>>It's kind of wild to me that crypto has caused some people be to pro arbitrage. Arbitrage is the most inefficient form economic rent because it is a tax on producers of value (a group that largely gets ignored in the crypto-verse) that goes directly to speculators. Arbitrage is a neutral activity, I dont see any universe where it could be seen to be a tax on producers of value (whatever that means), it is simply market participants correcting informational inefficiencies and providing liquidity. >>Yeah, my definition if inflation is a year over year comparison oh how much a basket of goods and services cost relative to a currency. What's yours? Reread my previous response to your reply on this point, on why this is not at all useful. >>Which currency and where are the transactions? Are Venezuelans buying BTC with bolivars? If so who is selling their BTC for Bolivars? Are they transacting day-to-day in a currency I'm not aware of? https://www.ft.com/content/02194361-a5b9-4bf0-9147-f36ba7759cf1 https://www.ft.com/content/02194361-a5b9-4bf0-9147-f36ba7759...

RC_ITR 5y ago
>it is simply market participants correcting informational inefficiencies and providing liquidity. You are describing the process of eliminating arbitrage. What synthetic stocks have is arbitrage. Is that distinction not clear to you? >why this is not at all useful. So a pizza slice cost 0.0002 BTC last year and now costs .0003 BTC and that's not meaningful to you? Just because someone said the word 'non-inflationary' doesn't mean Bitcoin is immune from the factors that cause inflation (supply and demand of a currency vs. supply and demand of goods and services - note that fixing currency supply is only 25% of that equation). >the FT article "While Turks have long chosen to protect themselves against lira volatility by keeping their savings in dollars or euros, data suggest that some of them are turning to “stablecoins”, which are pegged to hard currencies or other assets and act as a bridge between digital coins and national currencies." So the use case of crypto is making it so Turks can hold USDC (bought with USD) instead of just holding USD? Cool. EDIT: Just to be clear on my last point here, unless people are willing to sell their tokens for Lira, then Lira holders can't buy the tokens. If there is a large market of people willing to sell tokens for Lira, then the Lira can't be that bad of a currency or somebody is lying somewhere. Just because it's crypto doesn't mean you don't have to thinks about the two sides of the transaction - contrary to popular crypto belief, value isn't generated arbitrarily from the ether.

RC_ITR 5y ago

>it is simply market participants correcting informational inefficiencies and providing liquidity. You are describing the process of eliminating arbitrage. What synthetic stocks have is arbitrage. Is that distinction not clear to you? >why this is not at all useful. So a pizza slice cost 0.0002 BTC last year and now costs .0003 BTC and that's not meaningful to you? Just because someone said the word 'non-inflationary' doesn't mean Bitcoin is immune from the factors that cause inflation (supply and demand of a currency vs. supply and demand of goods and services - note that fixing currency supply is only 25% of that equation). >the FT article "While Turks have long chosen to protect themselves against lira volatility by keeping their savings in dollars or euros, data suggest that some of them are turning to “stablecoins”, which are pegged to hard currencies or other assets and act as a bridge between digital coins and national currencies." So the use case of crypto is making it so Turks can hold USDC (bought with USD) instead of just holding USD? Cool. EDIT: Just to be clear on my last point here, unless people are willing to sell their tokens for Lira, then Lira holders can't buy the tokens. If there is a large market of people willing to sell tokens for Lira, then the Lira can't be that bad of a currency or somebody is lying somewhere. Just because it's crypto doesn't mean you don't have to thinks about the two sides of the transaction - contrary to popular crypto belief, value isn't generated arbitrarily from the ether.