Don't these people care about the real victims, those of use with copies of Cyberpunk 2077 collecting dust on our shelves because our hardware can't run it? — Count Timothy von Icarus
Any thoughts? Criticisms? Am I horrible person for potentially jumping into this fray? — Noble Dust
When philosophers (or should we be more precise people who are interested in philosophy) are talking about investments, that is a sign for me. Basically this thread is active when the prices are high. A time to buy is when this thread hasn't been active for 6 months.This thread's activity probably isn't a good index for tracking bitcoin's value. The thread was last active, save a handful of posts, around 6 months ago before it went up all that much. It was silent during most of the steepest rises. — csalisbury
Cryptocurrencies aren't a fad or rubbish, they are something genuinely important. — ssu
I'm very aware of the environmental impact of crypto. The reality is that anything involving computing power affects the environment, including this forum (and yes, the surge in crypto is affecting it in a much larger way). — Noble Dust
Today's crypto-blows to the environment may be balanced by tomorrow's crypto-bandages. Or not. Who's to say? The market is so volatile. — Noble Dust
So anyway, back to me; should I mint an NFT or nah? — Noble Dust
I guess the question is: what are they important for, exactly. Sure the technology is interesting, and it's certainly useful if you want untraceable transactions. That's not purely a positive though. — Echarmion
The "monetary policy" in Bitcoin is a) do governments allow it or not and b) do those using it believe in it's value or not. There's no government able to tax it's citizens behind it or any physical aspects that metals have. Bit off from what monetary policy currently is.I don't really see the connection. Monetary policy affects bitcoin just as well, regardless of the "alternative" label. It's after all a big part of the reason it's market value is so high. — Echarmion
The "monetary policy" in Bitcoin is a) do governments allow it or not and b) do those using it believe in it's value or not. — ssu
There's no government able to tax it's citizens behind it or any physical aspects that metals have. — ssu
In many countries buying and selling isn't so easy as in Western countries. Holding foreign currency can be limited and the banking system a joke. There having bitcoin can be truly helpful in the role of medium of change. Yet it's extremely lousy as a unit of account as it goes up and down in price like a delirious rabbit. It's basically more of a medium of speculation than "store of value", but then again this is the time of the "everything bubble" where all "stores of value" are going up and down. — ssu
It's really an interesting discussion if bitcoin is truly a "safe haven" investment or not — ssu
The real risk with any so-called "safe havens", be it gold, the swiss franc or bitcoin is that IF there's a bursting of this bubble, all financial vehicles go down simply because people need to take cash from where ever they have them. The wonderful aspect of a margin call or as others call the phenomenon, asset deflation. Governments going after bitcoin is a typical thing in Third World countries, where the government has little control of the economy and desperately want's income. It could possibly happen here too, but then a lot has to happen before that. — ssu
Far more likely "threat" to Bitcoin is that it is replaced by a more "acceptable" cryptocurrency by those in power, which is then taken to use by the masses. I don't think that the majority of people have cryptocurrencies of today. Just like they can control the internet today, even if earlier people viewed the net as this bastion of freedom. — ssu
It's affected because exchanging from one crypto to another asset class requires the currency managed by the relevant central bank. — Benkei
Monetary policy of the US doesn't directly affect the purchasing power of EUR in Europe though. — Benkei
So having a currency that would be unaffected by central bank policies would be of value to many. — Benkei
Not directly, but the effects will travel through the interconnected real economy to the EU regardless. — Echarmion
Bitcoin is more sophisticated than trading postage stamps, but it's not in principle different as far as I can tell. — Echarmion
Ok, explain the mechanism to me how monetary policy in the US affects the price of buying milk in the Netherlands. If you can say this with such conviction you certainly have this figured out. — Benkei
You can't divide post stamps to reflect the exact value you need to pay for something else. They're physical too. There's not enough of them to go around, they can be easily counterfeited. Etc. — Benkei
There isn't one precise mechanism, but e.g. a loose money policy leads to more money going into speculative investments like futures, which affect global pricing / supply and demand. So if feed prices go up due to futures, the cost of producing milk goes up globally, affecting milk prices in the Netherlands. — Echarmion
As I said, bit off from actual monetary policy. But I guess what is considered and accepted as money is monetary policy in the broader sense.Those have nothing to do with "monetary policy" the way I understand it — Echarmion
Those measures start from what is legal tender.And governments cannot practically suppress currencies without some very draconian measures (which would also work against bitcoin) anyways. — Echarmion
Oh you would prefer 18th Century style dealings where your employer would pay your salary with his own currency, which you can use in your employers shops?That seems pretty much strictly negative from a social point of view. — Echarmion
Well, the structure how it uses a peer-to-peer network and blockchain might be things on the plus side to it.I'd argue it's not an investment in the traditional sense at all. It's purely speculative with no commodification attached. — Echarmion
Likely it's the Western Central banks that may look at this.Possible, but bitcoin is already pretty well established. Though the chinese government will certainly be able to do something like this. — Echarmion
Monetary policy of the US doesn't directly affect the purchasing power of EUR in Europe though. — Benkei
Not directly, but the effects will travel through the interconnected real economy to the EU regardless. — Echarmion
Ok, explain the mechanism to me how monetary policy in the US affects the price of buying milk in the Netherlands. If you can say this with such conviction you certainly have this figured out. — Benkei
There isn't one precise mechanism, but e.g. a loose money policy leads to more money going into speculative investments like futures, which affect global pricing / supply and demand. So if feed prices go up due to futures, the cost of producing milk goes up globally, affecting milk prices in the Netherlands. — Echarmion
As I said, bit off from actual monetary policy. But I guess what is considered and accepted as money is monetary policy in the broader sense. — ssu
Those measures start from what is legal tender. — ssu
Oh you would prefer 18th Century style dealings where your employer would pay your salary with his own currency, which you can use in your employers shops?
There's many negative aspects to private currencies also, you know. — ssu
Well, the structure how it uses a peer-to-peer network and blockchain might be things on the plus side to it. — ssu
Likely it's the Western Central banks that may look at this. — ssu
Ok, perhaps here it's good to remind you that money in your country is a foreign currency in other countries. And this is how US monetary policy can indeed effect the price of milk in the Netherlands. And this is why actually the "demise of the Dollar" thanks to reckless spending isn't at all a clear cut case as the US is part of the global economy...and everything effects everything. — ssu
This isn't far fetched as during the financial crises Switzerland suddenly found itself as a "safe haven" currency having it's franc roughly revaluing +20% towards the dollar and the euro. They had to go to negative interest rates (that people have to pay them for holding Swiss francs) and increase their monetary base, because the +20% jump in the Swiss franc was killing the important export market in a situation when the global market was already in a recession. — ssu
Hyperinflation is basically the universal distrust in a currency being a store of value: people may need to use it, but know it's basically worthless. That the supply of a cryptocurrency is limited isn't a reason why the trust in the currency being a store of value couldn't be shaken too. Simply put it, both with a fiat currency and a cryptocurrency there has to be people who think it's worth it's price as payment and willing to trade or exchange it to something else.My point was that while something like bitcoin is in and of itself immune to inflation, it's not decoupled from the monetary system as a whole, which today is global and, as you say, everything affects everything. — Echarmion
The Swiss franc has had this role of being a "safe haven" currency, but naturally as the country is small there aren't so many Swiss franc going around.Did this have anything to do with the swiss economy / banking sector or was it merely the perception that the Swiss franc was "safe" because of the reputation of the swiss banking sector? — Echarmion
As a small open economy, Switzerland is highly exposed to external disruptions. Exchange rate movements in particular exert a major influence on inflation and economic activity in our country.
A further characteristic of Switzerland is that the Swiss franc, as a safe-haven currency, tends to appreciate when global risk sentiment deteriorates. In recent years, a number of crises – notably the global financial crisis and the European sovereign debt crisis – have led to appreciations of the franc. What does the strong influence of developments abroad on inflation in our country mean for our monetary policy? It means that inflation can be controlled with even less precision than in the large currency areas. It is not possible – or only with disproportionate use of monetary policy instruments and correspondingly marked side effects – to always fully offset spillovers from abroad.
What is your reason for wanting to do so? — Echarmion
What do you think is shiba the next rockstar? — TheQuestion
What do you think is shiba the next rockstar? — TheQuestion
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