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"These posts are entirely the result of authors who didn't buy bitcoins when they were cheap." That's nonsense. The post is a result of applying a particular e

by voyou 13y ago

"These posts are entirely the result of authors who didn't buy bitcoins when they were cheap." That's nonsense. The post is a result of applying a particular economic theory of how money works to something that is apparently trying to be a form of money. This theory of money might be wrong in general, or it might for some reason not apply to bitcoin specifically. But to dismiss it simply as "bias" is willed stupidity - it is a way of avoiding addressing the actual arguments put forward in the post. (The specific theory being drawn on in that post is called Modern Monetary Theory; it isn't generally accepted by mainstream economists: https://en.wikipedia.org/wiki/Modern_Monetary_Theory https://en.wikipedia.org/wiki/Modern_Monetary_Theory )

maaku 13y ago
Furthermore, theories in economics are descriptive. One should not expect with certainty an innovative currency to succeed or fail based on how well it matches a particular theory. When we are in new territory, we should expect a few surprises.
- bitcoin-truth 13y ago
  Scientific theories are falsifiable: they make testable predictions. Austrian Economic theory comes closest to this ideal.
  - maaku 13y ago
    And now you've discovered why economics is a social science. It builds models of human behavior. Humans are non-deterministic at this scale. As soon as you build an economic model, it's possible it stops working because its existence influences the behavior of the humans its modeling.
grinnbearit 13y ago
The best model I've found that explains Bitcoin is Moldbug's Monetary theory. If you had to read just one article I'd recommend http://unqualified-reservations.blogspot.in/2011/04/on-monetary-restandardization.html http://unqualified-reservations.blogspot.in/2011/04/on-monet... But if you have the time you could read all his articles on economics conveniently collected at moldbuggery.blogspot.com (under economics)

by voyou 13y ago

maaku 13y ago

Furthermore, theories in economics are descriptive. One should not expect with certainty an innovative currency to succeed or fail based on how well it matches a particular theory. When we are in new territory, we should expect a few surprises.

bitcoin-truth 13y ago
Scientific theories are falsifiable: they make testable predictions. Austrian Economic theory comes closest to this ideal.
- maaku 13y ago
  And now you've discovered why economics is a social science. It builds models of human behavior. Humans are non-deterministic at this scale. As soon as you build an economic model, it's possible it stops working because its existence influences the behavior of the humans its modeling.

grinnbearit 13y ago

The best model I've found that explains Bitcoin is Moldbug's Monetary theory. If you had to read just one article I'd recommend http://unqualified-reservations.blogspot.in/2011/04/on-monetary-restandardization.html http://unqualified-reservations.blogspot.in/2011/04/on-monet... But if you have the time you could read all his articles on economics conveniently collected at moldbuggery.blogspot.com (under economics)