Why cryptocurrencies are a terrible idea

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technovelist
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Why cryptocurrencies are a terrible idea

Post by technovelist » Wed Feb 06, 2019 7:36 am

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dualstow
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Re: Why cryptocurrencies are a terrible idea

Post by dualstow » Wed Feb 06, 2019 10:59 am

OOPS
Canadian cryptocurrency exchange Quadriga says customers’ holdings are trapped in an electronic vault after the firm’s founder died without revealing the access keys to unlock his laptop
-- WSJ, today
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Don
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Re: Why cryptocurrencies are a terrible idea

Post by Don » Wed Feb 06, 2019 4:05 pm

dualstow wrote:
Wed Feb 06, 2019 10:59 am
OOPS
Canadian cryptocurrency exchange Quadriga says customers’ holdings are trapped in an electronic vault after the firm’s founder died without revealing the access keys to unlock his laptop
-- WSJ, today
So it's not just us, dualstow. Now I feel better.
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dualstow
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Re: Why cryptocurrencies are a terrible idea

Post by dualstow » Wed Feb 06, 2019 6:01 pm

O0
.
boglerdude
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Re: Why cryptocurrencies are a terrible idea

Post by boglerdude » Wed Feb 06, 2019 9:12 pm

"Cryptocurrencies are deflationary" not sure if this is bad.

https://www.cato.org/policy-report/mayj ... -deflation

I should read this
technovelist
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Re: Why cryptocurrencies are a terrible idea

Post by technovelist » Wed Feb 06, 2019 10:57 pm

boglerdude wrote:
Wed Feb 06, 2019 9:12 pm
"Cryptocurrencies are deflationary" not sure if this is bad.

https://www.cato.org/policy-report/mayj ... -deflation

I should read this
Deflation is good. Inflation is bad.

That's not what is wrong with cryptocurrencies.
boglerdude
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Re: Why cryptocurrencies are a terrible idea

Post by boglerdude » Thu Feb 07, 2019 12:03 am

> Deflation is good

So...why are you right and all the economists wrong.
http://www.igmchicago.org/igm-economic- ... UYOXSAKwrq

"a growing economy requires a growing supply of money to finance a growing volume of transactions with price stability."

"Fiat money (money not backed by gold) provides significantly more stable price levels over long periods of time. Stable price levels reduce uncertainty about the future, which increases the amount of investments made in projects that might not pay off for several years. When investment levels are higher, this improves both the long-term growth path of the economy and the long-term level of employment. Stable, predictable price-levels are the bedrock of a stable economy. Gold-standards subject the price level to the unpredictable movements in the both the supply of gold and the level of output."

https://www.reddit.com/r/badeconomics/c ... s/dc5b98o/
Look at the instability w/gold.

btw I dare you to post on that forum O.O
technovelist
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Re: Why cryptocurrencies are a terrible idea

Post by technovelist » Thu Feb 07, 2019 11:35 am

boglerdude wrote:
Thu Feb 07, 2019 12:03 am
> Deflation is good

So...why are you right and all the economists wrong.
http://www.igmchicago.org/igm-economic- ... UYOXSAKwrq

"a growing economy requires a growing supply of money to finance a growing volume of transactions with price stability."

"Fiat money (money not backed by gold) provides significantly more stable price levels over long periods of time. Stable price levels reduce uncertainty about the future, which increases the amount of investments made in projects that might not pay off for several years. When investment levels are higher, this improves both the long-term growth path of the economy and the long-term level of employment. Stable, predictable price-levels are the bedrock of a stable economy. Gold-standards subject the price level to the unpredictable movements in the both the supply of gold and the level of output."

https://www.reddit.com/r/badeconomics/c ... s/dc5b98o/
Look at the instability w/gold.

btw I dare you to post on that forum O.O
"All the economists" are not wrong.
Austrian economists are right; other "economists" are wrong.
Hope that helps.
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moda0306
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Re: Why cryptocurrencies are a terrible idea

Post by moda0306 » Thu Feb 07, 2019 12:15 pm

technovelist wrote:
Thu Feb 07, 2019 11:35 am
boglerdude wrote:
Thu Feb 07, 2019 12:03 am
> Deflation is good

So...why are you right and all the economists wrong.
http://www.igmchicago.org/igm-economic- ... UYOXSAKwrq

"a growing economy requires a growing supply of money to finance a growing volume of transactions with price stability."

"Fiat money (money not backed by gold) provides significantly more stable price levels over long periods of time. Stable price levels reduce uncertainty about the future, which increases the amount of investments made in projects that might not pay off for several years. When investment levels are higher, this improves both the long-term growth path of the economy and the long-term level of employment. Stable, predictable price-levels are the bedrock of a stable economy. Gold-standards subject the price level to the unpredictable movements in the both the supply of gold and the level of output."

https://www.reddit.com/r/badeconomics/c ... s/dc5b98o/
Look at the instability w/gold.

btw I dare you to post on that forum O.O
"All the economists" are not wrong.
Austrian economists are right; other "economists" are wrong.
Hope that helps.
While some Austrian economists foresaw the housing collapse, and also add some limited useful insights into some aspects of economics or monetary policy, let's not forget that many make ridiculous predictions about debt/interest/inflation spirals engulfing the U.S. that keep not happening. They also were generally part of the crowd that completely misspoke about the nature of the Fed, treasury and member banks while the monetary realist crowd was trying to figure out and/or explain exactly how these systems work.

Here's a steady decade-long barrage of Peter Schiff (one of the most well-known-and-quoted "Austrians") and his calls for imminent hyper-inflation.

https://seekingalpha.com/article/418247 ... ulf-planet

https://www.forbes.com/sites/johntharve ... 90859b0437

https://www.forbes.com/sites/afontevecc ... 9cc0a1c9d0

https://www.youtube.com/watch?v=1Zh_mjS8bQg
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Maddy
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Re: Why cryptocurrencies are a terrible idea

Post by Maddy » Fri Feb 08, 2019 8:44 pm

Cryptocurrencies are probably the best investment around. If you believe, as I do, that they're the prototype for a centralized digital monetary system, it makes all the sense in the world to keep them good and inflated until all the kinks in the system get worked out. Think about it: Why spend trillions of dollars on engineering a system when you can get the best and brightest to do it for you--for free?
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Re: Why cryptocurrencies are a terrible idea

Post by dualstow » Sat Feb 09, 2019 8:42 am

Regarding the Quadriga problem in post #2, I recently saw a comment that read, to paraphrase, that maxim "you can't take it with you" only refers to your own money. O0
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