[ExI] lotta splainin to do

spike at rainier66.com spike at rainier66.com
Wed Nov 16 04:49:58 UTC 2022


 

 

…> On Behalf Of Adrian Tymes via extropy-chat
…

the value of competing cryptocurrencies will all be a function of the scarcity

 

Not entirely.  Like fiat currencies, the faith people place in any given currency plays a large role in determining its value.  (Which breaks the rest of your logic chain, unfortunately.)

 

 

 

 

 

Ja, damn.  Then we have people who are good at creating a reality-distortion field around themselves who will come up with BitCoin competitors and sell them above the “real” value.

 

Aside on this last note: people who are good at creating the reality distortion field created one that convinced a lot of cash-holders that their currency would become worthless in the easily foreseeable because cryptocurrency was supply-limited by design, where fiat currency is supply limited by the arbitrary decision of the issuing government to not just print it in arbitrary quantities.

 

The same line of reasoning that occurred to me also did to those who fell for that fiat-currency-will-become-worthless line.  They realized the US congress has lost the ability to control the debt, which means they are no longer responsible for it.  They can’t be held responsible for something they could not control.  So with congress out of the way, the US government has no impediment to just printing as much of the stuff as they need or want, with no one seriously incentivized to even try to balance the budget.  Apparently congress as collectively given up on even trying to balance it.  So… there was no one even talking about the budget deficit in this latest US election.  So… no one in Washington is responsible, no one is motivated to slow the runaway spending, everyone is incentivized to spend it as fast as they can.  Result: that system is heading over the cliff.  We don’t know when, but we do know what.

 

Many went down that line of reasoning and bought cryptocurrency under the belief that US fiat currency must become nearly worthless.  But Adrian, you and I know, being California residents, that US fiat dollars will always be useful for something: paying California property tax.  So I would argue those greenbacks cannot become completely worthless because they can be used to pay a particular debt.

 

spike

 

 

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