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181.
by datadata 4y ago
You are conflating price volatility with inflation. Stocks are also down in price this year for the same reason. Stocks are not inflationary either.
182.
by datadata 4y ago
If the network is under load you can prioritize by paying a higher fee. If mining slows down it can take more time for a block, but difficultly will adjust to get back to 10mim cadence. I'm not sure what you mean by centrally registere
183.
by datadata 4y ago
As a lower bound it would need to be high enough to support the largest supported transaction. If the market cap of bitcoin was only $100, you could not transact $200.
184.
by datadata 4y ago
Visa has value (on top of it's utility) because it is able to take a 1-3% cut of all payments that use the visa network. Suppose bitcoin gave the equivalent utility as visa but for negligible fees. In this world, you would have the sam
185.
by datadata 4y ago
There is of course news that matters to bitcoin and impacts the price. When China banned bitcoin, one would expect price to go down. When Tesla bought bitcoin, price should go up. By your argument all commodities would also fall into the sa
186.
by datadata 4y ago
Sure, I was merely commenting on the cost to physically secure the asset. Necessary (to prevent theft) but not sufficient.
187.
by datadata 4y ago
That is irrelevant here. The argument that bitcoin is not inflationary is merely that it has a supply cap. USD has no supply cap but it obviously has lower price volatility. That said, it is the Fed's goal to purposefully reduce the p
188.
by datadata 4y ago
Rolling over our current national debt at the current rates will make the debt servicing costs too high relative to tax income. So either rates cannot stay high indefinitely, or inflation will continue until debt is smaller compared to tax
189.
by datadata 4y ago
> Bitcoin has no assets. Cash just as well "has no assets". You can't just compare bitcoin to a corporation and get something that makes sense.
190.
by datadata 4y ago
These work if you either have a master fed account or have credit with some bank that does. You can't settle instantly with an entity that is not already known in the system.
191.
by datadata 4y ago
Normally by inflation it is meant "monetary inflation", price has no bearing on this.
192.
by datadata 4y ago
I think the settlement story for bitcoin is actually superior than with USD/EUR. Yes you have to wait 10min x a few blocks, but that is final, irreversible settlement.
193.
by datadata 4y ago
Cheap money will come back again also, at least within 3-5 years
194.
by datadata 4y ago
What would invalidate your belief that it is all just a greater fool scam?
195.
by datadata 4y ago
The cost to store crypto is quite negliable compared to the cost to store gold. Easy to hide a billion dollars of bitcoin on a USB stick for 10 years. Good luck storing a billion dollars of gold, you couldn't even physically move it by
196.
by datadata 4y ago
A good chunk of the debt (~9 trillion) is owned by the Fed itself. When the bank finances a mortgage for example, because it is a fractional reserve system the bank is lending only a small fraction of its own capital. The bank simply borrow
197.
by datadata 4y ago
What's worse is that some of the inflation becomes masked because of shortages. So in a simple picture if the government gives money out to buy baby food, but there is no baby food, the price people are willing to pay for baby food wou
198.
by datadata 4y ago
Thanks for elaborating, I think this distinction does actually make sense. I do however still think that the this definition of intrinsic value does not really matter for justifying a "real" price. The intrinsic value ultimately i
199.
by datadata 4y ago
So a cultural convention for consensus on using a particular TLD is part of your definition of intrinsic value for a domain name. But for gold, the monetary premium for a similar social consensus is entirely distinct from the intrinsic valu
200.
by datadata 4y ago
In your belief system, what perpetuates for example the price difference between a .com domain and a .net domain? Is there an intrinsic value of .com over .net? Or do you believe that they should be equally priced.
201.
by datadata 4y ago
What is the point of raising this distinction? Air has infinite value/worth to every human, but its price is zero. It would make as little sense to start accumulating air on the converse assumption that something that has value will ev
202.
by datadata 4y ago
I agree with all of this, when I said "nothing" I meant just that "intrinsic value" is not what determines the price of something, in response to the parent's assertion about intrinsic value setting a price floor on
203.
by datadata 4y ago
I think that's just an extra step in your argument about intrinsic value. Now you have to analyze why the price of energy is $10/hour. That transaction is just another thing determined by a market where there isn't actually i
204.
by datadata 4y ago
Air has a extremely high intrinsic value for its use in keeping humans alive. Yet the price of air is zero. Intrinsic value does not determine the price of something, the only determination of price is by a market.
205.
by datadata 4y ago
How can you measure the intrinsic value of oil other than with a market? I agree it should have a non zero value in theory, but my point is that the price of anything is determined only by what someone else is willing to pay for it. The f
206.
by datadata 4y ago
But it is entirely made up, it entirely depends on someone buying the oil and the price they are willing to pay. The fact that there is in principle a use for oil does not mean that there is a buyer, especially since oil is not truly fungib
207.
by datadata 4y ago
There is actually no upside limit, but there is a fundamental downside limit of zero. What justifies oil being $130 dollars a barrel vs $100? The answer is also nothing.
208.
by datadata 4y ago
This article brings to mind the plot point [SPOILER ALERT] in "The Three-Body Problem" where the antagonistic and technologically superior aliens halt the progress of our entire civilization merely with nanotechnology that impedes
209.
by datadata 4y ago
I think there is just no way you could have a traditional bank provide the capabilities that tether provides. It acts like a bank, but it certainly does things that banking regulations to not actually regulate, and there is no way tether wo
210.
by datadata 4y ago
Agreed, I think N would have to be too high to depend on this entirely, and high N looks a lot like insolvency. But it could still buffer against a partial bank run.

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