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"Real money" -- which I think we're using as a substitute phrase for "fiat money" -- is just any representation of a promise of reciprocation. If I give you $10

"Real money" -- which I think we're using as a substitute phrase for "fiat money" -- is just any representation of a promise of reciprocation. If I give you $10 for a necklace, what that really means is "you give me the necklace, and I promise someone will eventually complete the barter by giving you something that we all agree has about the same value as the necklace." The money itself is just a representation that we can be somewhat confident this unknown future person (maybe even me!) will understand to be a valuation and agree to complete the trade. Financial economics is really just passing on a promise from one person to another in a chain. "Creating money" is just "making more promises"; inflation is just the result of so many promises being made that people have less confidence in the next promise made. In terms of crypto, it's basically just a matter of an apparent inability of people to agree on the value of each unit of promise. I.E. "if I give you one bitcoin for a car, how much do you believe someone else will give you a car's worth later to complete the barter?"

jqpabc123 4y ago
In terms of crypto, it's basically just a matter of an apparent inability of people to agree on the value of each unit of promise. In terms of crypto, it's basically just a matter of a an endless number of get rich quick schemes launched without limits or restrictions --- virtually anyone can create and issue crypto at any time as a means to try and enrich themselves. How many are needed before people start to catch on to the fact that they all have similar value --- basically zero? And then there are the costs and delays associated with processing transactions. Future generations will laugh at the fact that this was really nothing new. We've been there, seen that and done that in the past with every bank issuing it's own currency. It didn't work then and it won't work now.

jqpabc123 4y ago

In terms of crypto, it's basically just a matter of an apparent inability of people to agree on the value of each unit of promise. In terms of crypto, it's basically just a matter of a an endless number of get rich quick schemes launched without limits or restrictions --- virtually anyone can create and issue crypto at any time as a means to try and enrich themselves. How many are needed before people start to catch on to the fact that they all have similar value --- basically zero? And then there are the costs and delays associated with processing transactions. Future generations will laugh at the fact that this was really nothing new. We've been there, seen that and done that in the past with every bank issuing it's own currency. It didn't work then and it won't work now.