Furthermore, to describe descriptions good/bad to a market is against the definition of a market. It is what it is. A high price signal lets others that they should come in and get involved and thus bring the price down one way or another.
Being humble is a good thing. I cannot understand how certain ideologies or peoples always proclaim to know whats best for a stranger.
Someone should make a crypto Friedman coin based on this. Of course this would remove the ponzi, get-rich-quick aspect, so most wouldn't care for it.
I always find it weird when a group purports to know what the price of cacao should be halfway across the world when they’ve never stepped on to a finca in Ecuador.
I think a good deal of the hate Bitcoin gets is due to people not having much to go on when trying to think about currency generally. Without anything to stand on but the status quo, feelings seem to take over, and they are generally negative, motivating quickly thought up objections, in the mean, anyway.
On the other hand, it's far more likely the fed will stick with fiat currency. You'll still get paid in USD, pay your taxes in USD but bitcoin will exist as an alternative store of value like gold. There is around ~$11 trillion worth of gold above ground. Bitcoin has some properties that could make it a better store of value and much easier to transact with than gold. If it eats into gold's primary use case it will probably be a lot more valuable than it is right now.
However, I think of bitcoin as more of an inflationary hedge (even if we don't actually get inflation) or check on central bank monetary policy. So it's ultimately just an alternative asset. It also has some pretty amazing potential as a global settlement network but more so when it's volatility goes down.
The FED did cause the great depression and a lot of it had to do with currency being tied too closely to a deflationary token (gold).
>You cannot eat gold or bitcoin.
That is precisely the problem. The economy can get into a bad equilibrium where hoarding intrinsically valueless tokens displaces investing in productive assets. This state can persist because the firsts to invest in productive things are at a disadvantage to the token hoarders (at least for some time).
>The “hoarders” at some point will want to consume be it a pizza or a lambo.
Yes, then it becomes a game of "catch the peak" because when people realize all these tokens are sitting on the sideline but production has declined and there isn't much to purchase with the tokens, and that if they want to buy something at a good price they better be quick, the cycle can reverse explosively.
It's important for aggregate savings to be (at least indirectly) tied to things you "can eat" or the production thereof.