Post
Topic
Board Altcoin Discussion
Re: Altcoin - the alternative cryptocurrency?
by
johnyj
on 17/08/2011, 20:42:29 UTC
Each time an intervention occurs, it distorts demand. If the distortions aren't allowed to recede, further interventions that supply "easy money" will exacerbate the problem until it is no longer possible to compensate and the money supply is so far removed from real demand that bubbles form (demand that responds to the increases in money supply as opposed to real assets and productivity).

What I've described goes beyond simply making trade easier and crosses into the limitations of human perception on grand scales. Trade only gets so easy - the excess doesn't help. Because Alt/Bitcoin manage themselves internally, these distortions are virtually impossible. When distortions begin to occur, the system self-corrects. I'm sure there will eventually be certain specific situations where complications could arise, but for now they are two sides of an extremely sublime system

Although quite off-topic, it's a pleasure to read your post and get inspiration to think more

This "easy money" concept, I'm still confusing. What is exactly "easy"?

A cook in kitchen cooking hard to make 20$/hour
A fund manager sitting in his office to make 400$/hour
A banker get 400000000$ loan from FED with 0 interest
An early bitcoin miner mined 25000 BTC

Which is easier?

How could you decide the money supply is excess?

And, why economy can't expand at 10% or even 200% per year, what is the factor that limit it? It's decided by number of people? Technology? Human nature?