<div dir="ltr"><div dir="ltr">On Mon, Nov 21, 2022, 11:14 AM spike jones via extropy-chat <<a href="mailto:extropy-chat@lists.extropy.org" target="_blank">extropy-chat@lists.extropy.org</a>> wrote:<br></div><div dir="auto"><div><div class="gmail_quote"><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex"> <br>
Oh I have become so cynical I just hate myself! Or not, but if someone can<br>
talk me out of that dark line of reasoning, I am all eyes.<br></blockquote></div></div><div dir="auto"><br></div><div>You really shouldn't give anyone your wallet. Even with fiat currency, you are participating in a mass hallucination for how money works. Your "dark line of reasoning" is a matter of spin. I don't have a problem with spin, it's pretty useful if/when you understand it. (and yeah, i mean figurative and also the literal physics property... which maybe is easier to understand because it's more fundamentally consistent than the figurative kind)</div><div><br></div><div>So I have a stack of paper that I can exchange with merchants for actual stuff (fuel for my body, fuel for my car, other zero-sum resources, kk?) and when I have too big of a stack of paper I am worried that someone could bonk me on the head and take my stack. Banks are ostensibly more bonk-resistant, so I give them my stack with the understanding that they will give it back when I request it. There is already so much inherently wrong with the assumptions in that transaction that some have sought to right the wrong via cryptocurrency - mostly by assuming nothing, improving transparency, and employing crowd-source authentication of transactions (that's what mining actually is, yeah?)</div><div><br></div><div>Since I was ok [sic] with the bank holding my money, I am less likely to get bonked by a bad-guy (though fees and such are small bonks from the bank itself, but what'r gonna do?) I am ok [sic] with, for example, paypal holding a wallet with a few cryptocoins. I was already relying on paypal to do transactions with web merchants, with the expectation that they would act as another layer of security between the unknown level of trust that is the merchant and direct access to the stack of money that i keep at the bank. I accept the risk of paypal stealing my crypto along with the risk of paypal stealing the stack of fiat right out my bank. For that matter, I also accept the risk of my bank also refusing to return my money.</div><div><br></div><div>I also have to understand the risk associated with even having the stuff that money buys. We have a whole system of checks and balances to keep civilization from collapsing into a primitive fang & claw competition for stuff. Those known as "preppers" assert that collapse is imminent. I appreciate the sentiment but continue to (in this case) literally buy-into the mass hallucination of an economic watering hole that is stable enough to predict and anticipate. I guess what I'm suggesting here is that if we aren't going to accept the terms and conditions of the social contract for civilization, we have more difficult problems to DIY solve (without any of the economy of scale that a group's convention would afford)</div><div><br></div><div>My main concern for a crypto-backed credit card mechanism is that the volatility of 'value' means I will have to pay too much attention to the currency of currency. It's bad enough that I still have in mind what a pizza "should" cost as of 20 years ago and haven't really caught up my mental model with recent increases in costs and inflation. Imagine that a pizza today is 1 pizzacoin. Due to a shift in supply/demand, the same meal is 2 pizzacoin. I had budgeted 1 pizzacoin per day and thanks to the variable store of value, I can no longer afford the remainder of the week's meals. Maybe Elon will tweet an offer to exchange powerbricks for pizzacoin and they'll adjust relative to pizza that 1 meal will cost only 0.5 pizzacoin. In that case, should I purchase a week's worth of pizza before the pizzacoin bubble bursts again? Is the pizzacoin itself a better store of value than the pizza itself? If I can predict the rate of change, I can win on pizza futures. The biggest problem here is the instability of the coin - for the whales like Elon have too much influence on the exchange rate. Perhaps this is a new problem to solve? We could design a coin with a very low volatility, but then it would not offer the opportunity to 'get rich' by exploiting that volatility. </div><div><br></div><div>I guess we have to decide what kind of coins we want to control us.</div><div><br></div><div><br></div><div><br></div><div><br></div><div dir="auto"><div class="gmail_quote"><blockquote class="gmail_quote" style="margin:0px 0px 0px 0.8ex;border-left:1px solid rgb(204,204,204);padding-left:1ex">
</blockquote></div></div></div>
</div>