Link to the article: https://bitflate.org/post/2021/11/27/why-fixed-supply-tokens-cant-be-currencies.html

Comments URL: https://news.ycombinator.com/item?id=29586733

Points: 1

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Comments URL: https://news.ycombinator.com/item?id=29586702

Points: 1

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Bitcoin is shaking Elon Musk off. It has a history of sending thought leaders to the trash bin.

Halving price series are calculated since halving date.

The formula is: Projected Price = Price on the compared's mapped date / Price on the compared's halving date * Price on the current halving date.

Comments URL: https://news.ycombinator.com/item?id=26909719

Points: 3

# Comments: 1

Bitcoin is digital gold, God's money. When it comes to volatility, it's up to humans to "fix" it. The fix means we all have to "buy" into it, that is, blindly believe the problem will be fixed somehow. Stop selling, keep holding. Maybe, forever. :)

It's probably not going to be fixed. Volatility is likely an inherent property due to its limited supply.

https://bitflate.org/post/2020/05/10/bitcoin-volatility.html

The US over time loses its manufacturing and tooling capabilities. Most infrastructure work is custom. You can't build a bridge overseas, ship, and install it in the US. You can build the parts overseas. But it'll take a lot more time and resources to design and assemble them into a bridge in the US. So the final cost ends up being more.

I live in a neighborhood built in the 1980s. Up the hill, there are neighborhoods built in the 1990s and 2000s. After 2000s, houses look pretty much the same. The houses are more expensive. But the amount of custom design decreases over time. It's got more and more expensive to build custom things in the US.

I don't think it's possible to fix these infrastructure costs until we can fix the monetary policy. I think a new crypto system can provide a solution to this problem. Until then, we're stuck with cheap and unnecessary goods while our infrastructure is slowly deteriorating.

Austrians think money grows from hard money. It is also true in some senses. Money is made from money. It's circular and Ponzi-like. It requires you to believe in what hard money is. Austrian thinking leads to some cult-like behaviors. At the extreme, they'd be rent-seeking their precious Store of Value. It's just as evil as the Keynesians.

Money is data (Keynesian) with some kind of illusions (Austrian). The money that we need is between the Keynesians and Austrians.

Some projects on Ethereum, like DAI, have explored these use-cases. I think they have not been successful. DAI requires high reserve ratio (1-1.5) to manage the volatility of the base chain. You're using 1.5 USD to get 1 USDDAI. It's not very efficient. I'm less excited about assets on blockchain. I think the market is not ready. We need to reduce volatility first.

Crypto is rigid. Real world is volatile. It's hard to create a stable peg between crypto and the real world. So some kinds of bridge currencies are necessary. Fiat or some forms of digital fiat will continue to exist.

Bitcoin is a deflationary (disinflationary) asset. The BTCUSD peg is volatile. We need better money instruments to reduce volatility. I think an inflationary crypto can help.

The problem with crypto is volatility. The whole market moves in one direction or another, usually with Bitcoin. Scarcity is not the only thing that makes up the economy. We need also need inflation. Stop engaging in these ideological wars. Let's fix the problem and drive adoption.

https://bitflate.org/post/2020/04/26/we-need-inflationary-cr...

[1] https://bitflate.org/post/2021/02/05/the-bitcoin-price-parad...

[2] https://bitflate.org/bitflate.pdf

(1) A Store of Value

(2) A Medium of Exchange

(3) A Unit of Account.

Bitcoin is mostly a Store of Value. It doesn't have the other 2 functions. We can try to fit all 3 into Bitcoin. The Gold Standard failed to do it. The US Dollar system is failing. Bitcoin will likely fail to do it.