4 ms·

Is there even that much money in circulation?

withinboredom 4y ago
There doesn't need to be, and if you tried to sell it all at once, you'd destroy the economy by making that resource totally worthless.
- bilsbie 4y ago
  Source?
  - s5300 4y ago
    It’s a little bit outdated at this point, but Mansa Musas’ journeys.
  - mtoner23 4y ago
    FTX
  - robbiep 4y ago
    That’s how economics works. For real world examples, look at Mansa Musa’s pilgrimage (0) https://www.nationalgeographic.org/encyclopedia/mansa-musa-musa-i-mali/ https://www.nationalgeographic.org/encyclopedia/mansa-musa-m... (1)
    - danjoredd 4y ago
      Isn't that what happened to the Tulip market with the Dutch East India Company as well?
      - robbiep 4y ago
        That’s the bursting of a bubble - which is slightly different because of the speculative pressure that creates it, as opposed to pure oversupply
- seizethecheese 4y ago
  “Destroy the economy” is wrong. The price would collapse but the value of aggregate exchange of the good should increase. Example would be textiles in the Industrial Revolution.
  - withinboredom 4y ago
    hmmm, probably could have been more clear. I meant "metal economy" not literally the whole economy.
stanleydrew 4y ago
Not even close. > If the asteroid’s riches are confirmed, it may be worth more than the global economy at $10 quintillion. But of course that "may be" is carrying a lot of weight. The actual value would be much closer to zero when you think about it for more than a second. The "market price" for these metals would plummet after introducing a massive glut like this.
jakewins 4y ago
No, the article says the global economy is valued at $10 quintillion. This is someone taking the "if someone's willing to buy an apple for $100 and I have a billion apples, then my apples must be worth $100 billion"-crypto math to space.
- scotty79 4y ago
  Don't think in terms of money. Let's say it's made of just iron. What they are saying is that there's not only more iron there than we use in Earth's economy but if we priced this additional iron at current prices that additional iron would be worth more than everything else we do here on this planet economically.
  - jakewins 4y ago
    My issue was specifically the article valuing it in terms of money, incorrectly. “if we take all this iron and we multiply it marginal price of iron we get a large number!” If you want the worth of something you do the integral of the demand curve, not the marginal price times your volume for sale. This is the point of my apple example; once you’ve sold the first of your billion apples, the next apple you sell will earn you slightly less, until either your supply or the demand curve runs out.

There doesn't need to be, and if you tried to sell it all at once, you'd destroy the economy by making that resource totally worthless.

bilsbie 4y ago
Source?
- s5300 4y ago
  It’s a little bit outdated at this point, but Mansa Musas’ journeys.
- mtoner23 4y ago
  FTX
- robbiep 4y ago
  That’s how economics works. For real world examples, look at Mansa Musa’s pilgrimage (0) https://www.nationalgeographic.org/encyclopedia/mansa-musa-musa-i-mali/ https://www.nationalgeographic.org/encyclopedia/mansa-musa-m... (1)
  - danjoredd 4y ago
    Isn't that what happened to the Tulip market with the Dutch East India Company as well?
    - robbiep 4y ago
      That’s the bursting of a bubble - which is slightly different because of the speculative pressure that creates it, as opposed to pure oversupply
seizethecheese 4y ago
“Destroy the economy” is wrong. The price would collapse but the value of aggregate exchange of the good should increase. Example would be textiles in the Industrial Revolution.
- withinboredom 4y ago
  hmmm, probably could have been more clear. I meant "metal economy" not literally the whole economy.

stanleydrew 4y ago

Not even close. > If the asteroid’s riches are confirmed, it may be worth more than the global economy at $10 quintillion. But of course that "may be" is carrying a lot of weight. The actual value would be much closer to zero when you think about it for more than a second. The "market price" for these metals would plummet after introducing a massive glut like this.

jakewins 4y ago

No, the article says the global economy is valued at $10 quintillion. This is someone taking the "if someone's willing to buy an apple for $100 and I have a billion apples, then my apples must be worth $100 billion"-crypto math to space.

scotty79 4y ago
Don't think in terms of money. Let's say it's made of just iron. What they are saying is that there's not only more iron there than we use in Earth's economy but if we priced this additional iron at current prices that additional iron would be worth more than everything else we do here on this planet economically.
- jakewins 4y ago
  My issue was specifically the article valuing it in terms of money, incorrectly. “if we take all this iron and we multiply it marginal price of iron we get a large number!” If you want the worth of something you do the integral of the demand curve, not the marginal price times your volume for sale. This is the point of my apple example; once you’ve sold the first of your billion apples, the next apple you sell will earn you slightly less, until either your supply or the demand curve runs out.