Nobody Understands Cryptocurrency, And That's Ok

John Newman jnn at synfin.org
Tue Oct 17 09:51:11 PDT 2017



> On Oct 16, 2017, at 7:02 PM, \0xDynamite <dreamingforward at gmail.com> wrote:
> 
>> 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?  

Wrong. What the hell are you on about? 

Mining coins costs JUICE (electricity) - which comes out of burning carbon, or 
some other method which has to be paid for.

This is one of the reasons desperate Venezuelans 
got big into mining - their collapsing government 
subsidizes the power bill, giving them a nice
advantage when it comes to mining, and a
way to put some food on the table.

> 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.
> 

The US knew exactly what they were doing
when they tied OPEC to the us dollar.


>>> 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




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