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Maybe he is, but he correctly points out that "awesome transaction technology" has nothing to do with value of total monetary supply. The tech works equally wel
by oleganza 13y ago
Maybe he is, but he correctly points out that "awesome transaction technology" has nothing to do with value of total monetary supply. The tech works equally well when BTC is worth $0.01 as well as $1000.
- richcollins 13y agoOnly if there is sufficient liquidity at $0.01.
- saalweachter 13y agoKrugman's actual objection was that there is no reason to transfer value from Bitcoin-the-technology to Bitcoin-the-currency. Bitcoin could literally be a trillion dollar a year technology. Ten years from now there could be a trillion dollars a year of transactions flowing through servers running the exact same software that is running today. This could be true AND it could simultaneously be true that all Bitcoins currently in existence are worth $0. Why? Someone could take the exact same technology, and start a competing "coin" -- the way dozens of people already have -- and if one of those manages to win, then the "original" Bitcoins are worthless. The technology could succeed while the currency fails.