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Topic
Board Announcements (Altcoins)
Re: [ANN][DASH] Dash | First Anonymous Coin | Inventor of X11, DGW, Darksend and InstantX
by
TanteStefana2
on 09/11/2015, 22:31:13 UTC

Interesting, it's as if the elite, who are supposed to be experts on finance and economics, still can't understand what Bitcoin is about!  Can this be true?  Or are they simply playing to their customer base?

It's too fundamental a change for them to recognise. They are too far removed from the original concepts that defined money in the first place.

A money manager these days just has to know what market he wants his clearing systems to 'clear up' next. Nobody has actually had to worry about this since the gold standard was ditched. For example, take this commentator. She asserts that bitcoin doesn't do anything for economic growth because the coins just sit on the blockchain doing nothing whereas fiat money is "lent out" to grow the economy.

Really ?

Does the balance of your bank account reduce by the amount that the bank lends. Does the balance of anybody's deposit reduce ? No. Of course it doesn't because the fact is that fiat capital is not lent out - it's simply used as a base from which to lever up new loans which are backed by debt, nothing else. Same with gold - it sits in vaults all day long and is not lent out.

Thats the kind of ape-man understanding that modern financial commentators have of finance. They've never had to visit these fundamental concepts in practice because the modern financial system has developed so far beyond them that they are "out of sight" so to speak.

Loans and debt.

Was it you who linked to an article "only an idiot takes out a loan to start a company"?  I've been trying to wrap my head around lending in a Bitcoin economy.  I think the goal is to change the "buy now, pay later" mentality.  It's actually that mentality that has brought us to where we are, with exorbitant housing prices, etc...  But did it also help fuel technological innovation?  I'm not sure if we can stick that genie back in the hole?  I can see Bitcoin being lent out, but not until the price has flattened out.  If Bitcoin does take off, it will increase in real value far faster than a decent loan rate, thus be detrimental to the lender.  It's weird.

I still can't wrap my head around this!


LOL, they really are just talking to themselves, ROFL Cheesy  Grin Cheesy