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Topic: Bitcoin got economists stumped (Read 3990 times)

legendary
Activity: 980
Merit: 1020
April 25, 2011, 11:18:34 AM
#21
I just noticed this "It's just a fucking integer" thread...
https://bitcointalksearch.org/topic/m.39861

Very true. Therefore, the deflation argument that needs to be defended is that even with 8 decimals and the largest nominal attrition occurring in the earliest years, bitcoin supply is not only static but decreasing.  This is a slightly different economic defense than the deflation inherent in a static gold-based economy, because in the case of durable precious metals, they are usually found by someone else. Bitcoins can be completely eliminated and never found unless you luck upon the private key.

It's also unknowable if the bitcoin are lost or possessed by someone, unless someone point out all the public address they lost bitcoin in. However, people can never be sure if they lost it if the person is telling them the truth, and nothing but the truth.

Bitcoin ownership is pretty much absolute and more sure than property ownership in land but it's also almost impossible to know without people telling the truth.
sr. member
Activity: 303
Merit: 251
April 25, 2011, 10:57:59 AM
#20
I just noticed this "It's just a fucking integer" thread...
https://bitcointalksearch.org/topic/m.39861

Very true. Therefore, the deflation argument that needs to be defended is that even with 8 decimals and the largest nominal attrition occurring in the earliest years, bitcoin supply is not only static but decreasing.  This is a slightly different economic defense than the deflation inherent in a static gold-based economy, because in the case of durable precious metals, they are usually found by someone else. Bitcoins can be completely eliminated and never found unless you luck upon the private key.
sr. member
Activity: 303
Merit: 251
April 25, 2011, 10:11:06 AM
#19

I am paying for an eloquent article that defend Satoshi's decision to limit the bitcoin supply to 21 million. Plus, Mises articles are not public domain. I want public domain.


BTW, Mises Institute articles do fall under the creative commons license for republication. I am not seeking the btc bounty ;-) , but I wanted to point out that eloquent defenses of deflation already exist.  It matters not that the monetary unit is btc or gold or silver. The 21 million decision was an arbitrary number. Any economic defense regarding deflation will most likely point to deflation and metals as the "state of nature" starting point.

I think a more critical issue related to the static supply of bitcoin is how the distributed system deals with lost or destroyed bitcoin that never return to the system.  Not a major impact right now but with a 5% average attrition rate, the ~21 million supply could be significantly eroded because there is no expiration. I would suspect that at least 2% are already gone due to unrecoverable hard drive crashes.
legendary
Activity: 980
Merit: 1020
April 25, 2011, 09:50:53 AM
#18
On deflation, see...

In Defense of Deflation by Doug French http://mises.org/daily/4623

Deflation and Liberty by Jörg Guido Hülsmann http://mises.org/resources/3726/Deflation-and-Liberty

I am paying for an eloquent article that defend Satoshi's decision to limit the bitcoin supply to 21 million. Plus, Mises articles are not public domain. I want public domain.

sr. member
Activity: 303
Merit: 251
April 25, 2011, 09:49:00 AM
#17
On deflation, see...

In Defense of Deflation by Doug French http://mises.org/daily/4623

Deflation and Liberty by Jörg Guido Hülsmann http://mises.org/resources/3726/Deflation-and-Liberty
legendary
Activity: 980
Merit: 1020
April 25, 2011, 09:26:51 AM
#16
Still looking for an eloquent defense of deflation.

I have 4.17 BTC reserve, so it's enough for an article.
donator
Activity: 826
Merit: 1060
April 25, 2011, 09:20:25 AM
#15
damn deflation...
The people who want bitcoin to be inflationary should pause to think about this: if we knew that inflation would force Kiba to keep raising the price he pays for articles, we would never write anything because we could always get paid more later Smiley
legendary
Activity: 980
Merit: 1020
April 25, 2011, 07:26:31 AM
#14
We need to distribute bitcoin knowledge to the wider public and I am willing to pay for such articles.  Cool
Are you serious with that offer?
5 BTC per article
http://bitcoinweekly.com/pages/submission


And the price offered is change to 2.5 BTC.
member
Activity: 112
Merit: 11
April 21, 2011, 11:21:26 AM
#13
We need to distribute bitcoin knowledge to the wider public and I am willing to pay for such articles.  Cool
Are you serious with that offer?
5 BTC per article
http://bitcoinweekly.com/pages/submission
zby
legendary
Activity: 1594
Merit: 1001
April 21, 2011, 10:34:14 AM
#12
We need to distribute bitcoin knowledge to the wider public and I am willing to pay for such articles.  Cool
Are you serious with that offer?
full member
Activity: 210
Merit: 100
Presale is live!
April 20, 2011, 02:53:01 AM
#11
His analysis was laughter inducing. I think it's easier for computer scientists to understand economics than it is for economists to understand computer science.

x2


I don't get why every discussion about bitcoin has to involve complex debates about what atributes value to a currency!

It's so simple! If I write in a post-it "$1,15" and find 2 other people who agree that post-its with my handwriting are worth that value and they even trade it with me, voi là: I just created a new currency!!
legendary
Activity: 1222
Merit: 1016
Live and Let Live
April 20, 2011, 02:27:41 AM
#10
Bitcoin is weird to them, as it is a 'money' that is 'worth something' and doesn't require 'force' to use.
sr. member
Activity: 504
Merit: 252
Elder Crypto God
April 20, 2011, 02:03:31 AM
#9
economists understand as much about the economy as MBAs understand about business.

or as astrologers understand about the physics of a star...

There are some good economists out there. Walter Block is my hero.
full member
Activity: 126
Merit: 100
April 20, 2011, 01:24:46 AM
#8
economists understand as much about the economy as MBAs understand about business.

or as astrologers understand about the physics of a star...
legendary
Activity: 3920
Merit: 2349
Eadem mutata resurgo
April 19, 2011, 11:51:14 PM
#7
Can you imagine any economist actually inventing Bitcoin (or similar) ??

Although, some kudos should go to Jon Matonis for championing the cause for monetary freedom for so long on his blog ...

http://themonetaryfuture.blogspot.com/

We're lucky to have him posting here.
legendary
Activity: 1246
Merit: 1016
Strength in numbers
April 19, 2011, 11:26:21 PM
#6
His analysis was laughter inducing. I think it's easier for computer scientists to understand economics than it is for economists to understand computer science economics.


MR piece was stoopid.
legendary
Activity: 980
Merit: 1020
April 19, 2011, 11:05:07 PM
#5
The perceived crappy analysis of bitcoin economics lead me to write this: http://bitcoinweekly.com/articles/generation-and-assimilation-of-bitcoin-knowledge

We need to distribute bitcoin knowledge to the wider public and I am willing to pay for such articles.  Cool
sr. member
Activity: 504
Merit: 252
Elder Crypto God
April 19, 2011, 11:03:25 PM
#4
His analysis was laughter inducing. I think it's easier for computer scientists to understand economics than it is for economists to understand computer science.
sr. member
Activity: 334
Merit: 250
April 19, 2011, 10:49:49 PM
#3
Pretty sure he means this: http://marginalrevolution.com/marginalrevolution/2011/04/the-economics-of-bitcoin.html

Tyler completely missed it. I guess if you study interventions and monetary policy enough, that when you run into something that deems those worthless, it's hard to see the merits.

I believe it was Upton Sinclair who said "It is difficult to get a man to understand something when his paycheck depends on him not understanding it."

legendary
Activity: 1330
Merit: 1000
April 19, 2011, 09:49:02 PM
#2
Pics or it didn't happen.
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