lottin

58 ms·

751.
by lottin 5y ago
Double-think why? To be clear, my position is that blockchains don't allow (or make very difficult) enforcing ownership rights. Also the idea that no one can steal or somehow gain control over someone else's crypto-currency balanc
752.
by lottin 5y ago
A trusted party is required to enforce ownership rights. If somebody steals your digital assets, the trusted party will seize the stolen assets and return them to their rightful owner. Without a trusted party that has the power to seize a
753.
by lottin 5y ago
> genuine ownership "Not your keys, not your coins" is the opposite of genuine ownership. Actual ownership is not lost by losing possession of the thing being owned. That's the whole point of ownership.
754.
by lottin 5y ago
You misunderstood everything Varoufakis said.
755.
by lottin 5y ago
Trustless financial instruments are not very useful to begin with, because finance requires trust (as does any economic activity). For example, there is no way to actually do financing (that is, trading future consumption for present con
756.
by lottin 5y ago
I don't know the first two. Vitalik intelligent? He used to believe, and maybe still believes, that you could do quantum computing by simulating a quantum computer on a conventional computer. In fact, he even founded a start-up if I
757.
by lottin 5y ago
I don't see any such divide. What "very smart people" think crypto is a great invention?
758.
by lottin 5y ago
You don't have to reward anyone. Just don't borrow. But if you want to borrow the lender will expect a reward. Simples.
759.
by lottin 5y ago
> Something historically valuable will generally keep that value and increase over time (like the original Apple computer). This is absolutely not true. If we pick a random item from the 1980s that was valuable at the time, the chances
760.
by lottin 5y ago
This process doesn't create new "money" as far as I can tell. Centralised exchanges can indeed inflate the supply of any crypto-currency by lowering the reserve ratio. But I think the way they pump the coins is mostly by is
761.
by lottin 5y ago
> I deposit $100 of eth, borrow $50 of eth I could be missing something, but it seems you're lending $50 worth of eth, rather than borrowing. Your net debt position is <0.
762.
by lottin 5y ago
I think you don't understand interest rates. One man's interest is another man's cost of capital. If someone is paying you 4% for a riskless loan, it means they are overpaying for capital.
763.
by lottin 5y ago
How does that work? If you take a loan from a "decentralised lender" you can essentially walk away with the money and never pay the loan back. So, "decentralised lending" can't work, as far as I can tell.
764.
by lottin 5y ago
> Nexus Mutual offers insurance That's just a traditional insurance company.
765.
by lottin 5y ago
An insurance requires an independent assessment that a certain event has taken place (e.g. a car accident) and of the circumstances surrounding the event. A loan requires the ability from the lender to initiate legal action against the bor
766.
by lottin 5y ago
Right... why do you think the perpetrators or ransomware attacks demand to be paid in crypto-currency, instead of via a plain old wire transfer which according to you is more opaque ?
767.
by lottin 5y ago
That's not how monetary policy works. The "new paper" that is "printed" by the central bank is traded for a financial asset, typically a bond. The counterparty which previously had a bond, now has cash. It's
768.
by lottin 5y ago
Sorry about the confusion, I meant to say "if you think prices are going up without a corresponding increase in disposable income", not "if you think prices are going up with a corresponding increase in disposable income&qu
769.
by lottin 5y ago
If you think prices are going up with a corresponding increase in disposable income, you need to explain how this is possible at all. I don't think it's impossible, but it certainly is incompatible with an often-cited theory of i
770.
by lottin 5y ago
Prices can only go up if there is buying pressure, which means an increase in disposable income must precede the increase in prices.
771.
by lottin 5y ago
In short, yes. Inflation is an increase in the price level, and as such it only affects nominal prices, not relative prices. So the price of goods and services in relation to the price of your work (i.e. your salary) remains constant. No
772.
by lottin 5y ago
The implication is not that it isn't bad, but that it is a supply and demand issue rather than a monetary issue.
773.
by lottin 5y ago
Are you still talking about inflation? Inflation is change in nominal prices, it doesn't affect the cost of living.
774.
by lottin 5y ago
This is pure speculation. Nobody knows what would have happened, had Ukraine agreed to Russia's demands. Maybe the invasion would not have happened, or maybe Russia would have come up with more demands.
775.
by lottin 5y ago
They reject the idea that Economics is an empirical science. Instead they believe that knowledge is obtained by deductive reasoning alone and not from the observation of reality. https://en.wikipedia.org/wiki/Praxeol
776.
by lottin 5y ago
Austrian Economics is not a source of scientific truth, since Austrian economists openly reject the scientific method.
777.
by lottin 5y ago
Debt liabilities are debt. Currency is not a debt liability.
778.
by lottin 5y ago
Yes, but the US is not unique in this respect. Other countries also have governments and central banks that would intervene in the event of a systemic crash.
779.
by lottin 5y ago
If all banks go bankrupt at once, sure, the insurance will also go bankrupt.
780.
by lottin 5y ago
You get a multiplicative effect because when banks lend they create new deposits (=new money) in the process. That doesn't mean that the deposits created in this way are debt. They are not, the deposits are money. The loan is debt.

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