Gold is money and a ‘gun barrel to your head’ is currency - crypto is neither.
Crypto’s have no utility or intrinsic value. Hence, its only value can be in terms of a currency. But, as a currency unless you destroy the equivalent amount of fiat it’s simply more money chasing the same level of goods and services. The net contribution of Cryptos is therefore inflation. All the while wasting enormous amounts of energy on their creation, causing energy costs to rise … resulting in even more inflation.
As for the decentralisation argument - try transferring ownership of anything without a contract or consent of the state.
JP Morgan famously said “Gold is money ... everything else is credit”. The rest I believe is mine... although I’m sure there a number of variation out there with a similar theme.
Appreciate your comment. When discussing Cryptos or money with people I tend to use it - to my surprise it flicks a switch!
Your first statement was hilarious because I had just finished reading the "White House White paper on how to analyze climate change risk to Macroeconomic Forecasting".
I actually thought for a second that you were referring to this paper from the White House.
I found it so absurd I couldn't waste time reading any more thoroughly but your description of these clowns of humanity
"puts on display the vanity, stupidity and cupidity of our beloved race"
This direction of how to analyze these "RISKS of climate change into macro economic forecasting"
is so one sided looking for damage to the economy from climate change and help for the economy from administration policy that I found your words so funny. But then I realized you were talking about a completely different episode of vanity.
Gold and Salt, two beautiful forms of tangible currencies that will always stand the test of time. T Boone Pickens sold ketchup to men wearing white gloves, and he was a dear friend of Nancy Fancy Pelosi! 😂
Through the riddles of time, quantum mechanics centrifugate the order of lapsed nano specs. The lens of prism spectrums ignite the fire ants when the world is held hostage. Financial ladders reach the top of the scraper that sizzles with a cloudy promise of freedom. The goats horn pierces through the unbreakable wall and murky waters flood the abyss. The large number gathered in combat, they never saw the chariot coming. The smoke of musket man embraces the stratosphere. 😂
Fantastic article Bill. I played the game myself made 50% but got out very early and completely because I look at the 17% interest being offered and then 25% then 75% and it finally dawned on me that this was an obvious SIGN of a ponzi or fraud in the old fashioned econ environment I grew up in.
Thanks for expounding a bit on the Crypto World Mr. Bill.
The even worse "players" were the ones making the same promises to take in your USD, "allow" you to convert it into one of numerous "coins", then earn the "to the moon" interest rates.
It was a beautiful thing - if you got out in time. FTX sunk my 𝘀𝗺𝗮𝗹𝗹 foray into the Crypto "Bank" world when their belly-upping sucked in BlockFi as well. I am now among the not-so-proud creditors waiting on the bankruptcy court to throw me a few pennies on the dollar. Or not. Thankfully I took to heart BPR's crypto analysis and allocation advice from way back when. In the interest of full disclosure, I did pull most of the initial investment out when gains/interest got high enough, so losing "house" money wasn't as painful as the alternative.
Oh well - A Fool and His "Money." Lesson learned (even at this late date)...
Excellent perspective from a wise economist of historical proportion.
Historical, cryptocurrency is not but it dies fixe what humans of the corrupt nature cannot.
Just because crypto is open source and if you have the proper training and certification, sure you can create a token based on some type of scheme or even a community in your state can make a voting token or the local farmers could as well.
The more a thing has a use, need or fixes a flaw in something everyone uses, the more value the thing has; Period.
There's a 180 degree difference between a Celsius token compared a Tezo token, for example.
Still, a interesting perspective from a wise economist's old-school type of scrutiny. Much like the arguments about the Internet and newspapers. I'd love to read some of those archival critiques from BPR. lol
If BPR had another 50 year's to dissect cryptocurrency I'm sure they'd figure it out as well.
Gold is money and a ‘gun barrel to your head’ is currency - crypto is neither.
Crypto’s have no utility or intrinsic value. Hence, its only value can be in terms of a currency. But, as a currency unless you destroy the equivalent amount of fiat it’s simply more money chasing the same level of goods and services. The net contribution of Cryptos is therefore inflation. All the while wasting enormous amounts of energy on their creation, causing energy costs to rise … resulting in even more inflation.
As for the decentralisation argument - try transferring ownership of anything without a contract or consent of the state.
Love that first line. Is it yours?
Hi Luke
JP Morgan famously said “Gold is money ... everything else is credit”. The rest I believe is mine... although I’m sure there a number of variation out there with a similar theme.
Appreciate your comment. When discussing Cryptos or money with people I tend to use it - to my surprise it flicks a switch!
Your last sentence is why exchanges exist, they act as an intermediary, an 'escrow company,' if you will.
Your first statement was hilarious because I had just finished reading the "White House White paper on how to analyze climate change risk to Macroeconomic Forecasting".
I actually thought for a second that you were referring to this paper from the White House.
https://www.whitehouse.gov/wp-content/uploads/2023/03/CEA-OMB-White-Paper.pdf?bsft_aaid=671b14cb-e722-43c4-b4e1-e00673cfde57&bsft_eid=2f5808a2-10e4-4d79-9036-ed803f947c79&utm_medium=email&utm_source=blueshift&bsft_mid=e8ab1c0d-a1ca-402e-9622-18fd8ebebc1a&bsft_utid=049b6d09-1f72-414d-aa08-1e9debfaa509-000031995858&bsft_mime_type=html&bsft_ek=2023-07-17T15%3A45%3A23Z&bsft_lx=7&bsft_tv=3&pk=b27842f1ec08a0ecdffbc77e2424228b&utm_campaign=AWN_ALERT_07.17.23_%285_Links%29&vid2=bf8717b90509b1a3c36d2f95977feef8768f78bfdd1cfe96b3463248c511ec4c0d10edb2219dd15ff01b902b593c6cd5
I found it so absurd I couldn't waste time reading any more thoroughly but your description of these clowns of humanity
"puts on display the vanity, stupidity and cupidity of our beloved race"
This direction of how to analyze these "RISKS of climate change into macro economic forecasting"
is so one sided looking for damage to the economy from climate change and help for the economy from administration policy that I found your words so funny. But then I realized you were talking about a completely different episode of vanity.
Gold and Salt, two beautiful forms of tangible currencies that will always stand the test of time. T Boone Pickens sold ketchup to men wearing white gloves, and he was a dear friend of Nancy Fancy Pelosi! 😂
Through the riddles of time, quantum mechanics centrifugate the order of lapsed nano specs. The lens of prism spectrums ignite the fire ants when the world is held hostage. Financial ladders reach the top of the scraper that sizzles with a cloudy promise of freedom. The goats horn pierces through the unbreakable wall and murky waters flood the abyss. The large number gathered in combat, they never saw the chariot coming. The smoke of musket man embraces the stratosphere. 😂
For once in my life I passed on a sure thing. Ain't smart, just lucky i guess. just sayin'
Maybe I am cold and calloused, but why can't the SEC stay out of crypto and let crypto traders suffer the consequences of their own decisions?
Fantastic article Bill. I played the game myself made 50% but got out very early and completely because I look at the 17% interest being offered and then 25% then 75% and it finally dawned on me that this was an obvious SIGN of a ponzi or fraud in the old fashioned econ environment I grew up in.
Peter Schiff called this
Thanks for expounding a bit on the Crypto World Mr. Bill.
The even worse "players" were the ones making the same promises to take in your USD, "allow" you to convert it into one of numerous "coins", then earn the "to the moon" interest rates.
It was a beautiful thing - if you got out in time. FTX sunk my 𝘀𝗺𝗮𝗹𝗹 foray into the Crypto "Bank" world when their belly-upping sucked in BlockFi as well. I am now among the not-so-proud creditors waiting on the bankruptcy court to throw me a few pennies on the dollar. Or not. Thankfully I took to heart BPR's crypto analysis and allocation advice from way back when. In the interest of full disclosure, I did pull most of the initial investment out when gains/interest got high enough, so losing "house" money wasn't as painful as the alternative.
Oh well - A Fool and His "Money." Lesson learned (even at this late date)...
Larry Fink shilling the ponzi:
https://www.coindesk.com/business/2023/07/05/blackrock-ceo-larry-fink-says-bitcoin-could-revolutionize-finance/
[Historical, cryptocurrency is not but it does fix what humans of the corrupted nature cannot.]
Excellent perspective from a wise economist of historical proportion.
Historical, cryptocurrency is not but it dies fixe what humans of the corrupt nature cannot.
Just because crypto is open source and if you have the proper training and certification, sure you can create a token based on some type of scheme or even a community in your state can make a voting token or the local farmers could as well.
The more a thing has a use, need or fixes a flaw in something everyone uses, the more value the thing has; Period.
There's a 180 degree difference between a Celsius token compared a Tezo token, for example.
Still, a interesting perspective from a wise economist's old-school type of scrutiny. Much like the arguments about the Internet and newspapers. I'd love to read some of those archival critiques from BPR. lol
If BPR had another 50 year's to dissect cryptocurrency I'm sure they'd figure it out as well.
Always a pleasure.
Thanks for the educational essay as well as the comments.
That was an interesting article,i didn't realize J.P. Morgan Chase is much more of a sleezebag organization than i thought.thanks Gone Fishin"
Hi Fishin' -
Well if THAT doesn't piss you off, something is wrong with you. Thanks for posting...
Thanks for reference to Wallstreetonparade