Post
Topic
Board Speculation (Altcoins)
Re: [XMR] Monero Speculation
by
opennux
on 14/04/2015, 20:33:43 UTC
I am sorry that your explanation did not inspire confidence to invest in it. Despite my totally non-tech background, I know reasonably well how Monero operates, and it should not be impossible to gain the same understanding from emunie, although not from that explanation  Tongue

Yes, I would not recommend anyone make investment decisions from random forum posts, but I suspect you already know that Smiley Everyone needs to do their own research and make their own mind up. I was skeptical of emunie for a long while, but I am excited by their attempt to use the basic truth of the Quantity Theory of Money (MV=PQ) within a P2P network where all vaiables are known in real time, to achieve a worthwhile goal of price stability. Whether they achieve that is uncertain, but if they do then things will change quite a bit.

Why is this simplistic economic equation MV=PQ so popular, even among many bitcoiners ? It's pseudo science in my opinion.     

Even? There is just as much pseudo science here as anywhere else.

There is nothing wrong with MV=PQ. It is a tautology though. The issue comes when people try to make inferences using it, often holding values constant when they should not be.


Not only holding values constant, it's a too simplistic observation that doesn't take into account other variables. Such as confidence in the government, or in p2p world confidence in the dev team or community. We see it in central banking. We have seen QE in USD for a long time now, and people keep screaming for hyperinflation but miss the context that it's a reserve currency, and the largest debt market. Money flow in and out of countries and currencies. It's not about the supply as much as it's about confidence. (and note the 'supply' of use is mainly through debt which has to be repaid).
If you can't make inferences from it, does it have any use?

As to the actual emunie, you can't know all variables within the economy at all times. It is hubris and disingenuous claiming so. The goal of price-stability being worthwhile is highly debatable, as that exactly doesn't take into account all other variables. Price stability over what? A day? A week? A month? 10 years? 1000?