Comments by "earthstick" (@earthstick) on "Triggernometry" channel.

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  8. IMO Bitcoin is attempting to be a virtual gold standard. But I think in doing that we are reinventing the wheel. Things like fractional reserve and interest did not come about because of fiat currency. They came about because physical backed money is finite so the supply cannot always meet demand and something has to be done to prevent price deflation and then an unwillingness to spend money then and stagnant economy. So fractional reserve can be used to multiply the finite currency. You can see this happening already in crypto-currencies. Some currencies are now operating fractional reserve systems. So we are just reinventing the wheel. Another solution is just to invent another currency and run them in parallel. Similar to striking a new coin. While you can just keep inventing new currencies you do not really have tight control of supply. Another issue is that crypto-currencies do not really decentalise money. The mechanics of the currency are dictated by the algorithm and the algorithm is design by people, a few of them and in the case of bitcoin the creator is anonymous. What are their motives? We do need a different system of money but I'm not convinced now that what is on offer is the answer. The problem is really about how to make sure supply of currency is equal to demand. Not more because that leads to inflation, not less because that leads to deflation. Both should be avoided. So the supply has to be equal to demand. The question is how to measure demand and then how to meet it.
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