[Chugalug] More on Bitcoin:

Tyler Mittan flashbatmanquestion at gmail.com
Thu Aug 22 21:16:33 UTC 2013


There has a lot been said since I last checked so I haven't been keeping
up, but I do think that this nonsense about REAL, PHYSICAL things is
nonsense. Money is not all real, physical things.. Not unless you think a
credit card swipe is somehow valuable. All credit is a transfer of, not
funds, but credit it. It's really just a mark in a ledger. It is only when
the bank goes to the other bank that it is fulfilled. It's virtually a
credit.

It strikes me as odd for someone who is so anti-gold standard to make
claims like this which are so pro-gold standard it hurts.

Second, value is subjective (you can think Menger and the Austrians who
found this concept in which all modern day economics is built on except
socialists). NOTHING IS INTRINSICALLY VALUABLE. It seems like this is
something we all agree on. Given that money is not necessarily a physical
thing, and that value is subjective, we can see how bitcoin could be
considered money if valued by enough people.

Now that we've established that, we should look at why bitcoin is not
widely accepted which I mentioned before:
1. People don't know about it. Economists and computer geeks, but if you
were to ask the average, say, psychology student whom has not interest in
politics whatsoever (and there are plenty) or virtually anyone else, they
most likely wouldn't know about it.. this begs the question: even if they
did know about it, would they want it?
2. They might. The underlying point of me posting this was to show that
competing currencies could be a thing. They could be a thing that work very
well (as they have historically.. look up Richard Timberlake, Lawrence
White, and George Selgin). We can't say for sure if bitcoins would be a
very valuable thing, but we do know that it's getting very popular.. this
begs the question, if it's so popular, why aren't businesses buying it?
3. This can be answered mostly by the fact that the legality of it is iffy
at best. It can also be answered that people trust the backing of a
government (whom obviously have a pretty poor track record, but people
don't know better).

So, there's no reason to think that bitcoins can't be money. I am not
saying they are widely accepted. I am not saying if they were legal that
they even would be widely accepted. I am saying that competing currencies
can, and should, be a thing to keep the dollar honest.
On Aug 22, 2013 5:05 PM, "Stephen Kraus" <ub3ratl4sf00 at gmail.com> wrote:

> John...that is called the exchange rate. It really doesn't make bitcoins
> any more legitimate as a REPLACEMENT for the USD or as even a strong
> competitor.
>
>
> On Thu, Aug 22, 2013 at 4:53 PM, John Aldrich <jmaldrich at yahoo.com> wrote:
>
>> Quoting Stephen Kraus <ub3ratl4sf00 at gmail.com>:
>>
>>  Its funny that, Aaron a good comparison.
>>>
>>> Because if I sell something on Ebay, I set a price in USD.
>>>
>>> And if paypal doesn't give my bank my USD, I get cross
>>>
>>>  Yes, that's true, Stephen... but if someone in, say, Germany, wants to
>> buy what you're selling, they will pay you via PayPal in DeutschMarks,
>> which Paypal will CONVERT to $USD. Or if you want to buy something for your
>> VW from someone in Germa ny, they are likely selling in DM, and you will
>> pay in $USD, but THEY will receive DM from PayPal. Similarly, in theory,
>> PayPal could start accepting Bitcoins and then convert them to $USD or
>> whatever currency, or just bank them like you do with your local currency.
>>
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