Topic: Dash Sucks Dicks Dash Is Instamine (Read 5010 times)

Defeating Gresham's Law

Gresham's law seems to imply that transactions would driven away from the deflationary currency to an inflationary (debased) currency, yet this would in theory drive the exchange value of the deflationary currency downwards (given demand to sell and the loss of utility of the currency which loses its crucial unit-of-exchange and concomitant public confidence attribute) which would thus counteract Gresham's law while also decreasing the rate of reduction of money supply (due to lower transaction rate, i.e. velocity of money) and drive transaction demand back to the deflationary currency. So there appears to be a dynamic equilibrium wherein the deflationary currency remains the choice for transactions. Also there is the technical issue that I don't think it is possible to design a decentralized consensus blockchain without burning transaction fees. Thus there would be no inflationary currency which is decentralized as an alternative. Even if consumers decide they don't mind using a centralized vehicle for transacting and retain the decentralized blockchain only for settlement, the problem is they then can't get decentralized publishing and smart contracts without using the decentralized currency. Gresham's law defeated. Lightning Networks defeated. Tada.  

But that doesn't contradict what I aim at.  You can have "millennials-gamer-coin" if you want to.  They can exchange it for "your-town-grocery-coin" if they need groceries.

The next pandemic (2019ish) will be super-bug multi-drug resistant pathogens.

The one you reported has the key attributes (kills 60%, survives for months on skin and weeks on bed posts). OMG!  

@dinofelis how many social networking apps and accounts do you actively use? Have you used WeChat extensively?

I think you are out-of-touch with what most Millennials do with their time. Many now earn an income online such as for example getting paid for English tutoring on cam, being tipped for doing something outlandish on cam, etc..

For example, in app purchases are a big deal, such as game upgrades (buy a special power to reach the next level, etc).

Google "gamification Farmville" and learn a new field.

That is why I don't think you understand why Bitcoin already had great utility. It enabled me to pay my bills (from funds I had received from people all over the world and had stored in Poloniex or localbitcoins or even a Blockchain.info wallet) without leaving my computer (because I hate to lose hours out in the traffic of SE Asia). If I could, I would purchase everything (even groceries) from my computer.

Does the dino in your name mean dinosaur.

Spoetnik joined the dash team and of course as proud dasher doubled the fud against monero.

Bingo!

National currencies were/are the citizen's unit-of-account because it is very costly store your cash flow in a unit-of-account which is not the predominant unit-of-exchange.

Now that we are transitioning to B2C and P2P (C2C) globalized commerce, we need in some areas (especially intangible Internet commerce) a globalized unit-of-account and exchange.

Read that second sentence again and understand the profound implications. The coming moat is no longer national boundaries but tangible versus intangible (Industrial Age versus Knowledge Age) commerce. Also make sure you read my essay in the Economic Devastation thread.

Further explanation which also addresses the unit-of-account = unit-of-exchange point:

Actually, the Euro was as much an initiative of France as any.

As I have stated before, when the Euro was being planned, the commission in charge attended our World Economic Conference in London. I warned them that the Euro would fail unless the plan consolidated all the debts of member states. They said they understood the problem, but that the European people would never vote for that plan and so they wanted to get the currency through first and deal with the debt later.

That Phase II never came and as a result, as the euro then rallied from 80 cents to the dollar to about $1.60, all PREVIOUS debt of  member states DOUBLED in real cost. Joining the euro effectively destroyed Southern Europe and the politicians still cannot figure this out. It is as simple as you borrowed a foreign currency to buy your house and then that currency double in price. You now owed twice the amount in your home currency.

QUESTION:  Hello, I do not understand what Martin say about the fact that the Greek debt doubled when it changed into euro. Indeed, if the currency is twice the value of the old one then all your debt will double as Martin said. However all your assets will double in value too. So it is the same situation as before. I may miss something, could you please explain me what I am missing ?
Best regards,

ANSWER: Yes, private assets rose in value in Southern Europe as the euro rose from 80 cents to $1.60. However, this tended to produce deflation, not inflation as prices rose eliminating competition for tourism etc. reducing sales. The point about the public debt doubling was the fact that this was previous debt, not current, and government has no real performing assets. To service the debt that doubled, they also then began to raise taxes more aggressively and this then was much like strip-mining the economy. Servicing the previous debt increased dramatically reducing the ability to continue spending on various sectors as previous debt servicing was increased.

Germany benefited from the Euro because they were manufacturing products and selling them into Europe and did not have to worry about currency fluctuations. I helped the Japanese to sell their products globally by showing them that they had to price their products in the local currency and then take the FX risk home to manage. They beat the Germans who were pricing their cars always in Deutsche-marks so a Porsche doubled in value in dollar terms between 1970 and 1980 just due to currency – not inflation. The movement of creating a euro was to eliminate currency risk so the German manufacturers could sell their products throughout Europe.

Greece’s top three main industries are tourism, shipping, and industrial products. By joining the Euro, Greece lost the attraction of a cheap holiday for tourists and shipping prices rose. Greece is nowhere near attaining those manufacturing characteristics, and is often one of the smallest in this regard compared to Germany, Japan, and China. However, the Greek-owned fleet of ships remains where it has been for a very long time, at the TOP of the global ranking of shipowning nations. Joining the Eurozone has hurt Greek shipping increasing its cost and opening the door to competition. China is moving upwards rapidly in shipping, and potentially could overtake both Greece and Japan (the second largest) to become number one shipowner within a decade. Greece has not benefited from joining the

Eurozone and this has been the greatest myth which has hurt the Greek people tremendously.

European tourism began to move outside the Eurozone for vacations because it was cheaper. Greece has an economy with a public sector accounting for about 40% of GDP and with per capita GDP about two-thirds that of the leading Eurozone economies, this has contributed greatly to its debt crisis. Tourism provides 18% of GDP, so joining the Euro was a complete disaster for tourism and when the government is 40% of GDP and produces nothing to export, the debt crisis simply escalates. The likelihood of Greece have to exit the Eurozone is growing tremendously by the day.

You go learn why. Learn about the cost of volatility.

Learn why Germany's industry wanted the Euro to eliminate exchange rate risk for their European markets (and how that enslaved the PIIGS who borrowed in Euros but couldn't pay it back in devalued currency)

It doesn't matter what the "unit-of-account and exchange" is, or whether it's globalized or not.

The trade value of an asset is independent of how it is measured.

...because it is very costly store your cash flow in a unit-of-account which is not the predominant unit-of-exchange.

The currency units that are used to measure that value are irrelevant.

Now that we are transitioning to B2C and P2P (C2C) globalized commerce, we need in some areas (especially intangible Internet commerce) a globalized unit-of-account and exchange.

Currencies do not necessarily have to have a total order (you don't like that, do you) or hierarchy.  

Yeah, they just changed the name for xcoin to darkcoin to dash. The crappy parts remain unchanged.

Why do we "classify" crypto by market cap ?  Because we somehow think this is a gross measure of the "value pool" of the thing ; in other words, if new economic entities were to "take over" the entire thing, that's more or less what they would pay for it.  So that's "what it is worth".

So is Dash just meant to be a store of value and nothing else?

what about the coin that were swapped from darkcoin? if they were swapped 1:1 that is like instamining, because when dash was rleased the dev instamined a shit load of coin like 1 million but i could be wrong here

Naah, just kidding...

Dash team answered about instamine:

https://dashpay.atlassian.net/wiki/display/OC/Dash+Instamine+Issue+Clarification

block chains can take on the role of "small community currencies" where they also perform the function of a payment system.

These three aspects of monetary media not only are distinct, but actually have conflicting priorities - which is why they are almost never the same medium. If you try to create a crypto that does these three things well it will be a crap crypto because you'd have to create nasty couplings between conflicting objectives:

 • Payment systems need to be currency agnostic whereas blockchains have to be currency native
 • good stores of value need to impose scarcity to deflate prices over time whereas good currencies need to inflate liquidity to keep prices stable
 • currencies must be definable against a heterogeneous background of both payment systems and collateralising assets, whereas payment systems only facilitate the clearing of a trade and represent neither a currency nor an asset