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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