I'm sure if Bitcoin had the largest and most powerful military in the world it would have become the world reserve currency by now
this post was submitted on 21 Aug 2023
875 points (94.3% liked)
Memes
45746 readers
1667 users here now
Rules:
- Be civil and nice.
- Try not to excessively repost, as a rule of thumb, wait at least 2 months to do it if you have to.
founded 5 years ago
MODERATORS
No because currency with built-in deflation is a bad idea. It would get scrapped very quickly.
load more comments
(4 replies)
Bitcoin: 4.7% believed to be in the hands of a single person, another 3.1% in the hands of four addresses. Deflatory so no incentive to use it to make transactions. Value depends on the network effect (i.e. a pyramid scheme). Small transactions now too expensive to be realistic. 24% of the supply was created in the first year, 35% over two years. Movement of funds takes too long to be useful. Those who got in early are guaranteed to be richer than those who got in late without having made any effort...
Crypto would be great as a replacement of the stockmarket but it's fighting to be cash instead and it's doing a bad job of it because it's cash as envisioned by tech bros, not actual economists.
Also wastes energy and hardware (which includes rare earth metals mined by slaves) to endlessly compute hashes. Great solution for a post climate change world let me tell ya!
Since nobody else responded to the stock market argument: it's how cash is envisioned to work by Austrian school economists, not the economists currently in charge. The average person needing to trust strangers with their money is not good.
It's an entirely different perspective on how money should work (that was de facto illegal for decades), and only now can we put our money where our mouths are.
load more comments
(18 replies)
Though great privacy when used offline, which is also pretty sick and the adoption levels defies reason, it's virtually usable globally both online and offline.
Bank notes have unique identifiers allowing the government to track the path of your money. Privacy is dead
That also assumes every bill you use will be immediately returned to a bank. You'd have no way of knowing where money comes from and belongs to after one hop. Just make a purchase at the supermarket to exchange a 50 for 45 and you've got anonymous cash.
load more comments
(19 replies)
That’s why I roam the streets trading bills with strangers
Chad behavior
American in Spain here. Everybody declines USD. Literally got coffee for free this morning because it was the only shop I've seen out of like 100 in the week I've been here that wouldn't take card.
For a charge of €2.50, when I offered $5 he opted to take nothing instead.
Why not have local currency while you're in a foreign country where why would you assume they would accept your money they would have to go to the bank to exchange?
Hahahah, imagine going to another country and trying to pay in another currency and being shocked they wouldn't accept it.
I can't even spend Scottish notes in England when it's all Sterling, never mind trying to pay for a small shop coffee in dollars.
load more comments
(1 replies)
I understand it's easier for you just to use a card, so you don't think it's necessary, but it's probably a good idea to carry a few euros at least
Agreed. We've tried. ATMs aren't working with our cards and every touristy exchange kiosk option charges a shitload in fees. Why not just pay with card when literally every store until our second to last day in the country has been happy to take card? Including bus stations, train stations, taxis, etc. We stopped trying about halfway in when we got to more rural areas and they still happily accepted visa. We wanted to exchange at home before the trip but found out too late that our banks require two weeks notice to exchange currency so they can get it in.
We just learned today to ask and not assume before ordering. We were asking in the beginning but got complacent after the 100th "of course" response lol.
load more comments
(1 replies)
load more comments
(3 replies)
It's funny because thia just proves the metrics used to measure a Cryptos "Viability" apparently have nothing to do with its actual value.
What matters is it's trading power... Not it's circulation or 'Supoly Cap'
fully agree
Why is the US printing so much money?
Paper money is flimsy and wears down quickly. It's being constantly printed and replaced. This meme is vague and intentionally misleading. Physical money in circulation is replaced and old money destroyed. Constantly. That's what these figures are about. The wealth inequality, solid point. The rest is just vague word use to make it sound alarming.
Simple answer: Because they can, because it's lucrative, and because it's not as obvious as raising taxes. Imagine you could legally print money, and when anyones asks about it, you can just dismiss it with: "I'm stimulating the economy"
Got to keep the printer people in business
The US is printing a lot of money, but a lot of that money is theoretical and not really printed. Stocks are a way this happens, if you bought 10 shares at $10 and a week later they are worth $15, $50 got created. Loans are another way money gets created with a fractional reserve system, $1, 000 in savings can create $10,000 in loans.
I'm not an economist but I don't think money gets actually created in either of your examples, the money just changed hands in either case.
You are 100% correct and its amazing how accepting people are of that bullshit answer. Both the examples are transfers.
The value of stock is a reflection of value gained typically by capital investment and it's not just magic new money that comes from thin air. People have to get the money to buy the stock from somewhere. So they probably sold another asset and decreased it's value marginally.
Fractional reserve lending doesn't just make new money either. It lets the same money be spent over and over, which is not new money being created. If I loan you $100, and you loan Bob $90, Bob loans sue $81, so on and so forth, they're just lending smaller amounts of the same $100. You're still owed $100 and the entire chain is based on just that $100. This money moving through the economy more times is a term usually referred to as velocity and can have a massive effect on inflation or deflation, but it is most definitely not creating money out of thin air. For every dollar "created" someone owes the dollar, so their net worth does not change.
There's some dum shit going on with central banks these days and things like quantitative easing, but spreading silly nonsense doesn't help anyone. If the numbers in the meme are accurate it's like just talking about new dollar bills being printed. BECAUSE PAPER MONEY WEARS DOWN FAST AND NEEDS TO BE REPLACED CONSTANTLY.
I'm sure this meme is brought to you by crypto bro TM. All money is fake and made up crazy stuff, so buy my new money. It's the best money, cuz it's a scam like all money.
Fractional reserve banking literally creates money. If you have the only $100 in existence and put it in a bank, they can then lend $100 to someone else, now $200 exists. You still have that $100, and so does the person that got the loan.
load more comments
(3 replies)
load more comments
(1 replies)
Hmm, perhaps both are but symptoms of the greatest scam: capitalism.
HODL
We live in a society
It really is one of the society of all time
view more: next ›