I understand there is a division between circulating money and hoarding money, but I believe this division will disappear once a cryptocurrency takes off. I don't know who Daniel Krawisz is, but he talks about a hyperbitcoinization event, where there will be a transition to bitcoin as a world currency.
http://nakamotoinstitute.org/mempool/hy ... 11.7-11.21
Yes the person that wrote that is ignoring reality, which is that there is global economy already in place. Bitcoin has macro-economic implications, meaning it will alter our current system, not replace or destroy it like the doomsdayer thinks. The key here they miss is that governments can make policies to make their fiat better quality, and so it has a long way to go before bitcoin destroys it.
This is what asymptotically means, it means ALL our money will adjust over time until it is "ideal". Ideal means no inflation over time, money that doesn't degrade in purchasing power.
I guess where i'm getting hung up on is why people won't eventually stop using the circulating currency (in this case the dollar)? Why can't the hoarded money/asset and circulating money be one and the same? Can you explain "They will circulate fiat currency faster and faster, forcing our governments to reign in the currencies supplies thus asymptotically increasing the supply of money." as I don't quite follow?
If the hyperbitcoinization event does happen, I don't think "the public" will have to learn to demand good money; they will be forced to use good money (knowingly or not) as no one wants to get stuck with bad money.
Aside from Nash's "Ideal Money" can you link any favorite articles of yours or others that I may benefit from?
I read your post on Satoshi's keys and agree. It has been bugging me but I assumed that Satoshi would deserve what he got. If the price crashes out of fear, so be it, it was necessary. Once it's spent, he can't spend it again.
Thank you for your time.
You have to think about what you mean by "circulate" and you have to forget about what players like Andreas have been shoving down peoples throats with emotional obfuscation. It's non-sense. Circulate means to pass, and you are going to pass something that is dear to you right? You are going to pass that which is LOSING value.
Its like the game "hot potato", you don't want the money that is bad, so you pass it, so does the next person, and so on, and this is the definition of circulate.
What you are suggesting is that is good money, and that is why people "use' it, and by "use" you mean circulate. Nash calls "good" money, money that is quality, it isn't getting worse over time, and this is why people want to KEEP it, and not give it away.
You are thinking that money that people to "use" (as in "spend), is "bad" money, but that is not Nash's definition of bad. Money that people don't use, or don't spend, is actually good money, it is money that is dear, it is NOT losing its value and that is why people would hoard it.
It doesn't matter our definitions, the simple fact is, people circulate, use, spend, shitty money. They hoard, want, and drive the price up for quality money, money that is not declining in value, like historically gold.
Now you might understand the secret of Keyneisan economics, they sell us the belief that inflation is good, but really what is happen is they are making the economy LOOK healthy by forcing people to part with their savings, by constantly degrading the value of the money. EVERYONE spends because that is the rational thing to do with shitty money-to get rid of it!
If the hyperbitcoinization event does happen, I don't think "the public" will have to learn to demand good money; they will be forced to use good money (knowingly or not) as no one wants to get stuck with bad money.
Aside from Nash's "Ideal Money" can you link any favorite articles of yours or others that I may benefit from?
I read your post on Satoshi's keys and agree. It has been bugging me but I assumed that Satoshi would deserve what he got. If the price crashes out of fear, so be it, it was necessary. Once it's spent, he can't spend it again.
Thank you for your time.
hyperbitcoinization won't happen, because people will hoard bitcoin because its valueable, they won't part with it, and parting with it is necessary for circulation. How can a money be circulated that no one is circulating?
Instead people will spend their fiat as much as possible and get rid of it. This is why the congressional report talks about an increased velocity of money AS people gain faith in bitcoin. People will hoard bitcoin and start spending their fiat.
Aside from Nash's "Ideal Money" can you link any favorite articles of yours or others that I may benefit from?
I read your post on Satoshi's keys and agree. It has been bugging me but I assumed that Satoshi would deserve what he got. If the price crashes out of fear, so be it, it was necessary. Once it's spent, he can't spend it again.
Thank you for your time.
Bah its difficult, perhaps if I know some of your passions I can show some articles that relate, most of my articles are written to poker players, and some to specific people or player types. But I think you can read the memes again and imagine Nash is saying "I've been afraid to speak out, but bitcoin is going to bring the world currency systems into order" Nash did something amazing, and he had to be secret about it.