American Economics Thread

[AndrewS]

Bitcoin and other crypto currencies have their uses and I do see it as a way to kill/deprive private banks of money.

It should also allow a whole new way to think about stocks and dividend. It makes buying fractional stocks that much easier, imaging being just average worker save that can spend only like $100 into stock. Take for example a stock like Tesla which is out of this persons reach at around $650 but with fractional stocks he actually could buy a fraction of a tesla stock and ride the upward or downward wave and see his $100 become $120 or go to $0.

Another scenario instead of being paid dividend every month or every quarter, they could stream the dividend payment every other day. Same with your salary they would stream it hourly or daily toward your wallet. The same with a savings account the could payout the interests daily/weekly or monthly.

Bitcoin and other cryptos have 2 main differences over traditional electronic payments.

1. You have a distributed ledger (and there are various kinds) which allows for transactions to be verified publicly amongst the participants, without needing a central authority.
2. You can have varying levels of backing for a unit of crypto currency. Eg. Bitcoin (no backing), a private company or the full backing of the government that it will always be 1:1 with the USD or RMB.

But these 2 functions do not have to go together.

You can use blockchain to execute contracts and transactions automatically.
But why would you use want to a risky cryptocurrency?
A blockchain transaction could trigger a transfer of an asset like a house, or fiat currency whose value is fully backed by the government.

A currency has to have some sort of stability if you want to use it as a day-to-day currency.
Look at the wild swings (up and down) in Bitcoin value over the years.

Bitcoin is inefficient compared to other varieties crypto/blockchain because:
1. Bitcoin is deliberately designed to use up lots of computing power
2. Bitcoin has no price stability no private or government backing, so it's not suitable for day-to-day use.
Bitcoin's intrinsic value is based on its usage for money laundering, and it's other use is a speculative investment based on this usage.

That is why I say Bitcoin should be banned.
Alternative blockchains and e-currencies will take its place, which would be better

 

[Andy1974]

Bitcoin and other cryptos have 2 main differences over traditional electronic payments.

1. You have a distributed ledger (and there are various kinds) which allows for transactions to be verified publicly amongst the participants, without needing a central authority.
2. You can have varying levels of backing for a unit of crypto currency. Eg. Bitcoin (no backing), a private company or the full backing of the government that it will always be 1:1 with the USD or RMB.

But these 2 functions do not have to go together.

You can use blockchain to execute contracts and transactions automatically.
But why would you use want to a risky cryptocurrency?
A blockchain transaction could trigger a transfer of an asset like a house, or fiat currency whose value is fully backed by the government.

A currency has to have some sort of stability if you want to use it as a day-to-day currency.
Look at the wild swings (up and down) in Bitcoin value over the years.

Bitcoin is inefficient compared to other varieties crypto/blockchain because:
1. Bitcoin is deliberately designed to use up lots of computing power
2. Bitcoin has no price stability no private or government backing, so it's not suitable for day-to-day use.
Bitcoin's intrinsic value is based on its usage for money laundering, and it's other use is a speculative investment based on this usage.

That is why I say Bitcoin should be banned.
Alternative blockchains and e-currencies will take its place, which would be better

No one or thing can ban Bitcoin, Bitcoin is a PROTOCOL. You can’t un-think an idea.

 

[Team Blue]

No but you can make it much, much more difficult to make that idea actionable.

 

[AndrewS]

No one or thing can ban Bitcoin, Bitcoin is a PROTOCOL. You can’t un-think an idea.

It is possible to implement bans of Bitcoin so it fades into irrelevance.

Remember that there are other blockchains with lower transaction costs and better price stability.

You can already see this happening in China.

 

[caudaceus]

weekly first time jobless claims at 770k, unusually high for a recovery.

10 year treasury yield hits 1.74%, it may hit 2% by April.

the liquidity overflow caused by the QE is the game changer.

Damn, there goes the stonk price.

 

[PhSt]

Didn't think that American cities have degenerated to this level

 

[LesAdieux]

on yield and inflation again

both fed and pundits are trying to make out that the over shoot of inflation expectation is due to the strong recovery. but inflation usually picks up when the economy approaching to full employment, and the US economy is far and away from that point. nobody wants to admit that QE maybe the culprit.

another unpleasant fact, it seems vaccines haven't killed off covid, a new wave is on the way.

 

[daifo]

Didn't think that American cities have degenerated to this level

Ever major US city has this. In fact there is 60,000+ homeless people in Los Angeles County itself!

 

[j17wang]

Ever major US city has this. In fact there is 60,000+ homeless people in Los Angeles County itself!

decline of america, I hope some CIA analyst reads this and gets a nasty reaction.

 

[2handedswordsman]

No one or thing can ban Bitcoin, Bitcoin is a PROTOCOL. You can’t un-think an idea.

it is just another "financial instrument"