Nobody Understands Cryptocurrency, And That's Ok

[\0xDynamite]

On 10/16/17, juan <juan.g71 at gmail.com> wrote:
> On Mon, 16 Oct 2017 15:20:56 -0500
> "\\0xDynamite" <dreamingforward at gmail.com> wrote:
>
>> What bitcoin NEEDS TO DO is restrict itself to the Creative Economy
>
> 	why? and restricted by whom?

Why?  So it can understand itself?
By whom?  By Mr. and Mrs. Better Reason.

>> (limit itself for purchase and exchange of purely informatic goods,
>> like news, music, etc.)  and THEN see how bitcoin translates into
>> physical "real-world" currency.  That is, it makes no sense to compare
>> or exchange physical currency to bitcoin as bitcoin is not associated
>> with actual real-world value
>
> 	what's that supposed to mean? Although bitcoin is not commodity
> 	money and so it doesn't have any value apart from being an
> 	accounting mechanism, bitcoin's virtual' value can be associated
> 	with anything....

You don't understand.  I see.

>> (like oil, metals -- things that have
>> intrinsic value and hard to reproduce).
>
> 	...still you can use bitcoin to pay for those, just like you
> 	can use the even more worthless govt money. It's not an ideal
> 	situation but it kinda works...

To my knowledge, no one has given any gold or oil in exchange for a
made up currency like bitboin.  Why?  Because it doesn't know how to
do what the US has done -- even if the US did it without understanding
it.  (The US accidently made its dollar tied to a real value by
limited inflation.  Their monitoring of inflation made it get tied
(without them probably even knowing it) to oil and perhaps ag
production)).  This is what has made US currency the most valuable.

>> If bitcoin were to become THE only currency for informatic goods on
>> the internet, exchanged predominantly *virtually*, then it doesn't
>> matter the "exchange rate". because its value is entirely related to
>> how people value the informatic goods online.  Perhaps someone will
>> give 1000 bitcoin for song A,

> 	lol I thought we 'agreed' that there's no software theft cause
> 	there's no software property...so you don't need to pay shit
> 	for songs...

That's right you don't NEED to.  But what do you do when no one
produces any songs because they can't get enough money to produce
them?

>> while another will give 1 bitcoin -- the
>> system will work to equalize and evaluate the virtual goods online.
>>
>> Here's how I solved this problem in the Pangaia system.  Give 1
>> bitcoin for each vote given online for whatever 3rd party (not
>> affiliated with bitcoin) website that allows you to express your
>> opinion.
>>
>> UNDERSTAND THIS:
>>
>> Expressing your opinion is the ultimate unit of work in the virtual
>> world.  Distribute bitcoins on this basis.  That devalues them, yes,
>> but then you don't have to expend 100kW of energy to produce them,
>> maybe call them nanobits.
>>
>> Then allow them to be traded freely as a neutral currency for the net.
>> After this gets established, ONLY THEN can you really set a EXCHANGE
>> RATE for bitcoin with physical dolllars -- because you've tied and
>> anchored it to REAL WORLD VALUES.
>>
>> That's the only way to make it work.
>
> 	it's not even clear what problem you think you are solving....

The problem is that Bitcoin is a solution in NEED of a problem.  You get it?

The problem is that:
* people want to trade stuff online,
* they also want better quality stuff availble online,
* also want avoid giving credit card data online
* some want to disassociate with US currency

People with sound economic knowledge want these things also:

* currency that is associated with actual value that is difficult to reproduce
* is easily passable
* makes producing social value more efficient.

The suggestions given will accomplish that by tying bitcoins to the
unit value of virtual WORK (your opinion expressed by a vote).

Marxos

So how are you going to do that