Pages

Jump to bottom

5 comments

1 kirkspencer  Mon, Mar 3, 2014 6:33:15am

I think I need a drink - Kudlow’s right for a change. (Some of his reasons are stupid but the main point…)

that said, I’d like to make a minor correction. Bitcoins are money. What they are is bad money, but they are money.

Money is any token that is trusted as a medium of exchange between two parties (so long as the medium isn’t a recognized substitute for other money). In other words, I can exchange bitcoins for goods and the recipient doesn’t consider them a promissory for later receipt of dollars or ducats from me.

But yeah, they’re bad money and at root the reason is that they are insufficiently trusted. The reason they’re insufficiently trusted are the reasons Kudlow and Krugman and their peers have pointed out.

2 Dark_Falcon  Mon, Mar 3, 2014 12:30:04pm

re: #1 kirkspencer

I think I need a drink - Kudlow’s right for a change. (Some of his reasons are stupid but the main point…)

that said, I’d like to make a minor correction. Bitcoins are money. What they are is bad money, but they are money.

Money is any token that is trusted as a medium of exchange between two parties (so long as the medium isn’t a recognized substitute for other money). In other words, I can exchange bitcoins for goods and the recipient doesn’t consider them a promissory for later receipt of dollars or ducats from me.

But yeah, they’re bad money and at root the reason is that they are insufficiently trusted. The reason they’re insufficiently trusted are the reasons Kudlow and Krugman and their peers have pointed out.

What reasons of Kudlow’s do you think are in error?

3 kirkspencer  Mon, Mar 3, 2014 2:40:59pm

” It has no central-bank regulation, network operations, or even centralized issuance.”

None are requirements for money to be money.

Historical example: shell money.

4 Dark_Falcon  Mon, Mar 3, 2014 4:30:40pm

re: #3 kirkspencer

” It has no central-bank regulation, network operations, or even centralized issuance.”

None are requirements for money to be money.

Historical example: shell money.

For that money to function properly on the global financial network, those are requirements. You have a point that Kudlow could have clarified, but given that Bitcoin is online-only he likely felt he didn’t need to.

5 harlequinade  Tue, Mar 4, 2014 1:47:24am

But that ignores that we use other things as currency.

Air miles, super market points, farmville coins are all currency to the people that use it. There is an implicit trust in the system that allows this to work.

Sure, it’s not great money. There is massive fluctuation, but it’s a currency that its users trust in.

Also - Dudebros? I see this being bandied around a lot. Why not just say “You crazy kids and your new fangled things. That just scares me. I’ll mock you” and then shake your fist.

A generation that has grown up on sci-fi and computers have generated a currency that they are controlling and using amongst themselves.
Sure, I’m not going to get a mortgage with it, and it’s still the gold rush out there, but as a first iteration currency, they could be doing a lot worse.


This page has been archived.
Comments are closed.

Jump to top

Create a PageThis is the LGF Pages posting bookmarklet. To use it, drag this button to your browser's bookmark bar, and title it 'LGF Pages' (or whatever you like). Then browse to a site you want to post, select some text on the page to use for a quote, click the bookmarklet, and the Pages posting window will appear with the title, text, and any embedded video or audio files already filled in, ready to go.
Or... you can just click this button to open the Pages posting window right away.
Last updated: 2016-01-01 10:29 am PST
LGF User's Guide RSS Feeds Tweet

Help support Little Green Footballs!

Subscribe now for ad-free access!Register and sign in to a free LGF account before subscribing, and your ad-free access will be automatically enabled.

Donate with
PayPal
Square Cash Shop at amazon
as an LGF Associate!
Recent PagesClick to refresh
Who Is, or Was, the Greatest Martial Artist in History?I only got to the rank of 2nd degree black belt in Chinese & American Kenpo, so I am certainly no expert. I earned all my higher belts at American Karate Studios in Northeastern Ohio, and was a competitor on ...
Samuel Vargo
5 days, 18 hours ago
Views: 343 • Comments: 4 • Rating: 2
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
The Way We Regulate Self-Driving Cars Is Broken—here’s How to Fix It The key issue is this: the current system is built around an assumption that cars will be purchased and owned by customers. But the pioneers of the driverless world—including Waymo, Cruise, and Uber—are not planning to sell cars to ...
Thanos
5 days, 22 hours ago
Views: 329 • Comments: 0 • Rating: 1
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
Android’s Trust Problem Isn’t Getting Better Android security is largely failing due to a smorgasbord of issues and lies. Published today, a two-year study of Android security updates has revealed a distressing gap between the software patches Android companies claim to have on their devices ...
Thanos
1 week ago
Views: 587 • Comments: 3 • Rating: 2
Tweets: 1 • Share to Facebook
Shares: 0
Comments: 0
: 0
Tour of the Moon in 4K Take a virtual tour of the Moon in all-new 4K resolution, thanks to data provided by NASA's Lunar Reconnaissance Orbiter spacecraft. As the visualization moves around the near side, far side, north and south poles, we highlight interesting features, ...
Thanos
1 week ago
Views: 558 • Comments: 0 • Rating: 2
Tweets: 0 • Share to Facebook
Shares: 0
Comments: 0
: 0
Vermont Governor Signs Sweeping Gun Control Measures Vermont Gov. Phil Scott on Wednesday signed sweeping gun control measures -- including limits on the size of magazines -- that the Legislature passed last month after contentious debate. The measures:-- Raise the minimum age for gun buyers to ...
Thanos
1 week, 1 day ago
Views: 645 • Comments: 1 • Rating: 1
Tweets: 1 • Share to Facebook
Shares: 0
Comments: 0
: 0
Roseanne Barr Is Tweeting About QAnon, a New Pizzagate-Style Conspiracy Theory Barr's been full metal Trump-loving wingnut in a social liberal suit for a long long time. This is why I would never watch her show, and why I won't be spending money with advertisers on her show once someone ...
Thanos
2 weeks, 6 days ago
Views: 1,936 • Comments: 0 • Rating: 2
Tweets: 1 • Share to Facebook
Shares: 0
Comments: 0
: 0