I’ve realized that the cryptocurrency industry is of lack economics theory backing.
Bitcoin, a toy from IT industry has no future at all, as a currency.
When bitcoin came along I was impressed by the technology and the mathematics … The fact there’s a finite number of bitcoins bothers me a lot, and second their variable value bothers me a lot. So I’m not impressed. I think something rooted in the banking system is a lot safer for consumers.
-------vinton cerf, the father of internet
So far almost all of the Bitcoin discussion has been positive economics — can this actually work? And I have to say that I’m still deeply unconvinced. To be successful, money must be both a medium of exchange and a reasonably stable store of value. And it remains completely unclear why BitCoin should be a stable store of value.
—Paul Krugman, 2008 Nobel winner.
If you sniff at Serf and Krugman, how about Hayek?
They are also interdependent in such a way that, although at first different attributes of money may seem desirable for its different uses, money renders one service, namely that as a unit of account, which makes stability of value the most desirable of all.
----From Charpter XIII, “Denationalization of Money” by Hayek, 1974 Nobel winner.
I was a crypto believer, and my faith collapsed because of volatility of those sucking coins.
Should I awake you? Gold is bad money for its deflation. Cryptos are much more worse coins than gold and fiat.
According to Hayek:
Volatility=? He did not mention this kind of toy at all!
Recently I think that this forum should be called [size=18pt]volatilitytalk.org[/size].
Let’s face that - only IOUs can be less volatile. Less volatile doesn’t mean non-volatile, e.g. RUB/USD (and Russia spent lot of $ to counter downtrend). How would it look like if Russian RUB had less than 1M users?
Plain crypto-currencies/assets are superb global medium for:
high risk investment
online content delivery
Hmmm, maybe more. And all of this with pseudo-anonymity. From now, I’ll ‘smite’ every post complaining on volat*****
Bitcoin (and Peercoin) will always be volatile, but they can still be used as a storage of value. That said, I always smile when I hear the argument, “People will hoard Bitcoin, so it will be too valuable to be useful.” :