No, that is how banks make their money and the Treasury too. The Knights Templar invented the check (cheque?) to finance the Crusades and then The Medicis figured out how they could loan this money they didn't really have in the late 1300s and thus founded the modern world.
So "investment" in Bitcoin is still a ponzi scheme, even if you can buy gift-cards and video games with it. Clearly you have learned nothing from the MMT debate....because you are committed to your explosive gains with Bitcoin ponzi (That's how the human brain works; self-interest determines one's ideology). Good points.... in as far as Musk has no understanding of fiat currencies.....AND except that inflation has been dead for decades and central banks have been desperately trying - and failing - to get it back into the 2-3% range ever since the GFC (or in Japan's case, ever since the property bubble there burst in 1989). BUT...... China's rapid development is forcing the US to look at the real basis of a nation's productivity, which is technological advance via R&D. (and partly, in China's case, via transfer of technology via globalization; but China has now been forced to develop its own R&D, as a result of US paranoia about loss of global hegemony to China. The next 10 years will be very 'interesting' indeed, as China's economy finally surpasses the US). Hence Biden wants to spend $6 trillion.......funded by reversing some of the massive transfer of money wealth to the top 1% which has occurred since erroneous macro policies introduced by Reagan and Thatcher. But Biden and the world will discover MMT by necessity, as climate change and global pandemics force a rethink about central bank operations, and allocation of resources by free markets alone becomes increasingly untenable if we are to avoid the planet's ecological collapse. IOW, global debt is not the problem, irresponsible employment of the planet's resources IS the problem. But like I said, you have your Bitcoin dream to pursue, so none of the above will command your attention.....[/QUOTE] Look we're pretty much on opposite poles on economic policy....but I'll just say this, on what basis do you say Musk has no understanding of fiat...I find this statement outrageous considering he owns so much of it. I also find it amazing that you think spending $6 trillion is going to reverse the cantillon effect... in other words you're saying the thing that causes the Cantillon effect is going to reverse the cantillon effect...bizarre
Interestingly the Chinese government is permitting use of Bitcoin for investment purposes: (from SCMP) Chinese officials have endorsed the use of cryptocurrencies as investments but not as mediums of exchange, due to fear of stoking financial instability However, financial authorities appear eager to use cryptocurrency research and blockchain technology for development of the sovereign digital yuan OK, it would be more accurate to say Musk is taking advantage of the present dysfunctional monetarist system - which denies governments the right to spend their own currencies - and hence Musk is placing bets on the fear of inflation resulting from massive debt-based covid rescue packages forced on governments and funded by central banks' borrowing. (In MMT, central banks can issue debt-free money; that's the bit Musk likely doesn't understand...but either way, the current dysfunctional system doesn't allow it). "A Cantillon effect is a change in relative prices resulting from a change in money supply, which was first described by 18th-century economist Richard Cantillon. ... Instead, history shows that certain assets take favor over others, leading to rising in some areas of the economy and falling prices in others." IOW, both you and Cantillon (in the 18th century!) are spouting the quantity theory of money thoroughly debunked by Keynes. "Keynes' theory of money and prices brings forth the truth that prices are determined primarily by the cost of production. Keynes does not agree with the old analysis which establishes a direct causal relationship between the quantity of money and the level of prices." So, spending $6 trillion to upgrade US infrastructure, transition from fossil to green, and employing everyone IS do-able without causing inflation, because the US has the resources and productive capacity to do it. But you and the Repubs with their delusional sovereignty of the individual ideology, will likely bar the process in Congress, citing lack of money, as a front to hide their seeking to maximize their own claims on the nation's output. But Biden should know: China is not beholden to such ruses....
Just to note you misrepresent me, I never said this..vvvv....I believe what you've done is against forum rules
Bitcoin, ethereum get S&P cryptocurrency indexes https://news.yahoo.com/bitcoin-ethereum-p-cryptocurrency-indexes-202341533.html
You'll need to be more specific: neither I nor the adjudicators to whom you are appealing will have the foggiest idea of how you have been misrepresented. Pick one point at least. Yes, pretty much in line with my SCMP report. And another stock market index fund junket, beloved by financial capitalists playing in their financial casino, to avoid the real and essential work of production in the real economy.
You do know Musk is one of the big Crypto Investers right? Anyway, btc is more volatile than an EKG. It makes conventional day trading look like long term bonds. The ones making consistent money are the Crypto companies or the Monopolistic Processors. Its like saying hey, want to make money from gambling? Build or go buy a casino
I notice you have abandoned the debate, and are reduced to mere assertion of your own proposition. Bitcoin is of course attractive as a (ponzi) "investment", given the dysfunction of the current global mainstream economics paradigm since the GFC, which has resulted in central banks everywhere reducing interest rates to near zero (or less!); hence people with savings are frustrated they can't earn money on their savings...
Look you're simply wasting my time.... imagine a ponzi scheme that has it's own index similar to the S&P and Dow Jones.... your argument is ridiculous and becoming more so every day as crypto goes mainstream
Bitcoin is outside my realm of understanding. Perhaps because it is not an understandable commodity. I do have a sizable investment in gold though, and have always done fairly well with it over the years.
I already mentioned the financialization casino (responsible for the GFC) that bears scant relationship to the real economy,...but carry on, I hope you do well with Bitcoin, even though it can't enhance the nation's productivity. I'll see how it's going in a decade, when China finally surpasses the fake financial-derivatives-based US economy. [link] The Stock Market Is Not the Economy (tcf.org) "But this idea that the market is an indicator of the future and closely linked to the real economy is mostly a myth."
It is pretty easy to understand. It is like the U.S. dollar except it wasn't created by the U.S. government and isn't managed by it. It was created by a programmer and is managed by nobody or by everybody depending on how you want to look at it. It is better than the U.S. dollar in the sense that it exists in a finite amount and therefore is free of the possibility of inflation. More bitcoin cannot be created like dollars. It is worse than the U.S. dollar in that it it isn't tied to a government so it has less credibility than the dollar for most people. Imagine the same thing from a different source.
Like gold in that respect.... which had to be abandoned because there was not enough gold in the world to accommodate burgeoning global trade. But the (quantity of) the US dollar is in effect also limited - to the productive capacity of the US economy, if inflation is to be avoided.
Bitcoin is outdated. The new financial system will run on ethereum defi. Ethereum has many other technological uses outside of s simple store of value.
The dollar has lost 95% of its value over my lifetime. Inflation has not been avoided and never will be.
1: It's a colossal waste of electricity, absolutely worthless as a currency. BTC uses 910 kWh per transaction whereas Visa uses 148 kWh per 100,000 transactions. 2: It's not a proven inflation hedge. To be fair, it's never been tested on this front substantially. We just had a decade of low inflation (see: the superior risk-adjusted returns of bonds versus gold/precious metals between 2010-2020) so there would have been no way for BTC to have been tested on this in the US, despite what inflation doomers will argue. Also you can see in countries which have actually had hyperinflation in the past decade like Venezuela that they far prefer to hedge with USD. 3: Increasingly correlated with equities, especially since 2020. When the S&P500 fell by 30% last March, BTC fell by over 50%. So one of the advantages that crypto proponents used to point to (that it's uncorrelated) is going away. This has only become more true since last March. 4: Paper-thin liquidity which means that the price can move substantially based on a few large trades. 5: BTC has its own private central bank in the form of Tether Inc., a shady company in Hong Kong with nine employees which has printed, since inception, over 45 billion tokens which they have claimed are all fully backed by reserves in USD, which they then use to buy BTC and other cryptos. If they are telling the truth then this would make this tiny, shady company larger by market cap than major corporations like Target and 3M. Of course, nobody who pays any attention to this space actually believes that they are fully backed by USD. In fact they have stated that they are not and are in all likelihood "backed" by other cryptos and crypto-backed loans. So in essence they are buying up assets that they then use to claim as USD "reserves". Very nice and not-at-all unsustainable system they got going on. 6: The recent success and outperformance of shitcoins like doge over BTC, to put it lightly, shows that there is basically zero truth in the argument that "it goes up in value because supply is limited". 10,000 new dogecoins are created every minute and yet its performance has **** all over bitcoin for months now. This is because, like all crypto, the value is based on literally nothing other than speculation. So yeah, I hate bitcoin, but more than that I hate the cult-like attitude about it. It's spilled over into the stock market as well with idiots treating GME almost like a religion as well. You should be concerned with the reality of why an asset increases or decreases in value rather than falling in love with it, and base your opinion on the asset on that.
Technology is going to change the financial sector dramatically, the problem China has is that it tries to control everything, technology is going to rip that control out of government hands because people all over the world are sick of the corruption that goes with government financial control... The push to decentralise is growing exponentially, it is now becoming a matter of urgency as the dinosaur bankers & corrupt politicians, in their attempt to cling to their power & wealth threaten our very survival.
Largely agree with your post, except the Chinese government intends to join in the fray, by allowing Bitcoin, and issuing its own digital currency (as I already reported).
The important thing is the currency has maintained its purchasing power. ie, an hour's work today will in general buy the same (or more) than an hour's work fifty years ago. Therefore "inflation" - unlike hyperinflation which is very rare and has specific causes related to collapse in a nation's productive capacity - is not of concern if appropriate measures are in place (...highly contested among economists, of course, but nevertheless the chosen measures are always in operation one way or another..which is why we don't have hyperinflation).
It's all of those things. They tell me BitCoin is mined by computers solving very complicated math problems. Math problems of what and for what purpose no one has been able to tell me. Just like those who searched for Gold only a few became rich. So I figured the way for me to make money was to buy the picks and shovels that the miners needed. Ethereum on the other hand has been gaining traction as it has shown that it can be used as a crypto currency to do business transactions world wide. I do own some of Ethereum outright and do believe it will continue to be the choice currency of banks and business in the future. LiteCoin will be a survivor of the crypto wars but I wouldn't jump on the bandwagon of any others without some deep research and a rollercoaster stomach. I'm sure some other Dogecoin is sitting in the wings just waiting to ride the bubble of oblivion. I throw BitCoin and all of them into my portfolio as part of my metals allotment of no more than 5% which includes gold, silver as a hedge against inflation.
One of the major issues in the crypto currency world is completing and keeping track of transactions. The currency miners aren't creating currency. They are assisting with the transaction management and earning currency for their efforts. The trick is to avoid spending more on the mining than it produces. It is very competitive and not something amateurs should try to do. There are many articles on the internet covering this activity.
