Furthermore, theories in economics are descriptive. One should not expect with certainty an innovative currency to succeed or fail based on how well it matches a particular theory. When we are in new territory, we should expect a few surprises.
Re:The Fair Price of a Bitcoin is Zero
by bitcoin-truth on Tuesday December 03, 2013 @10:55PM
(#6844947)
Scientific theories are falsifiable: they make testable predictions.
Austrian Economic theory comes closest to this ideal.
And now you've discovered why economics is a social science. It builds models of human behavior. Humans are non-deterministic at this scale. As soon as you build an economic model, it's possible it stops working because its existence influences the behavior of the humans its modeling.
Re:The Fair Price of a Bitcoin is Zero
by grinnbearit on Wednesday December 04, 2013 @03:11AM
(#6845646)
The best model I've found that explains Bitcoin is Moldbug's Monetary theory.
If you had to read just one article I'd recommend http://unqualified-reservations.blogspot.in/2011/04/on-monet...
But if you have the time you could read all his articles on economics conveniently collected at moldbuggery.blogspot.com (under economics)
That's nonsense. The post is a result of applying a particular economic theory of how money works to something that is apparently trying to be a form of money. This theory of money might be wrong in general, or it might for some reason not apply to bitcoin specifically. But to dismiss it simply as "bias" is willed stupidity - it is a way of avoiding addressing the actual arguments put forward in the post.
(The specific theory being drawn on in that post is called Modern Monetary Theory; it isn't generally accepted by mainstream economists: https://en.wikipedia.org/wiki/Modern_Monetary_Theory )