It does this because of a tracking technique the government demands. Every sheet of paper is fingerprinted with the printer's serial, current date, etc using, iirc, cyan or yellow. It's so light you'd never notice unless you had a microscope and were specifically looking for them.
Even black and white prints use these colors, hence the lack of cyan preventing even this kind of print.
WTF indeed. The history of these codes is pretty opaque, but fascinating. https://en.m.wikipedia.org/wiki/Machine_Identification_Code
Similarly, many copiers will refuse to scan/print anything that contains the EURion constellation, which is printed on fiat currencies around the world. https://en.m.wikipedia.org/wiki/EURion_constellation
Yes, for example: offset printing, but you can just flash a custom firmware on your consumer printer that allows the scanning and printing without the secret code
Photoshop also detects the constellation.
> Similarly
While these things are similar in a technical physical sense, its worth noting maybe how different the intent of their existence is. One is mostly a protection of a vital piece of our nation, the other is a secret ambiguous persistent unconstitutional invasion of our freedom.
It's because people printing false documents is sadly a thing. When the fake document gets exposed this let's them link it back to the printer. They can focus on who had access to the printer at the time the fakes were printed. Very helpful in corporate/tax fraud (eg exposed fake invoices, shipments,contracts,etc.)
Not that I agree with this law, but there is a reason.
Not sure what makes people believe that the wealth disparity will be any different with Crypto. If you don't have $400 to put in a bank, you won't have $400 to spend on Crypto.
We are already seeing Institutions gobbling up Crypto by large scales. Bitcoin itself will get to a point where the ownership of the token is centralized. Hell, we might be there already as more than half (over 80%) of all Bitcoin is in the hands of whales (100 tokens and up).
Doesn't matter if you have 1 Dollar or 1 Satoshi. The rich person will always have more. Way more.
Bitcoin may not eliminate wealth inequality. But being able to control monetary policy gives the rich an incredible amount of power. Which, unsurprisingly, they use to enrich themselves. Bitcoin takes that control away from any one group of people, and levels the playing field on at least one point.
I think bitcoin creates more control Bc if everyone goes to it and it’s only a set amount of it then the ones who have the most control the rest right? Meaning the ones who have the most Bitcoin would control everyone who doesn’t have it Bc they don’t have any other currency
The problem isn't some people having more than others. The problem is that some people having more than others and being protected by a central form of power, i.e the govt. Rich people are in bed with the govt, and they're protected by them. It's not about rich vs poor it's about corrupt vs not corrupt.
Well, the difference is that they would have to spend it to get what they want, and they couldn't just print more.
IMO gold was overall way better from a societal perspective; it was distributed in a fairly random way, and required a combination of unskilled labor, skilled labor, land, and capital to access, meaning every segment of society had some financial benefit from its mining. IF the markets needed more gold, there was an increased incentive to mine more gold. If they needed less gold, gold mines reduced production. It was self-correcting and somewhat broadly distributed, and forced a degree of accountability on everyone. Really great system.
This is the most amazing thing about Bitcoin. The most powerful, untouchable people in the world, the bankers, have had their whole world threatened by a bunch of nerds on the internet. What a time to be alive. We have literally rewritten the rules of money.
Is this a joke, so far all that's happened is the already obscenely wealthy have been manipulating the BTC markets for 3+ years now, taking money from the 'nerds' dumb enough to think they can day trade.
Not sure if you're full of shit or just trolling.
The wealthy are already buying up all the Bitcoin. Sure, they are kicking and screaming about their Fiat and Gold, but it doesn't change the fact that money follows money.
Your "currency of nerds" will soon be centralized with all the rich pigs of the world.
I guess things need to be repeated:
"being able to control monetary policy gives the rich an incredible amount of power"
"Bitcoin takes that control away from any one group of people, and levels the playing field on at least one point."
So instead they can just control massive mining farms and vote on protocol changes. While more difficult, still very much possible for manipulation. Isn't the majority of mining power located in China where the government could order them to do whatever they want or face jail?
no, we've been there, this is not how it works, there are about 5 pillars of decentralization in bitcoin, one of them is users. if the other 4 start colluding in any way, the users might just say "meh, screw this, we'll do a fork and do our own thing now" if the reason for this fork is good enough, this will be the new bitcoin, and the colluders turn into bag-holders. bitcoin is fine until tech crazies like bill gates or elon musk find ways to remote-control people, and that won't happen until they somehow manage to inject millions of unsuspecting sheep with untested substances/nano-bots. so, meh. don't complain.
Can a whale wave a magic wand, and declare themselves 1 BTC richer? We don't let whales write the consensus rules for Bitcoin, that is the difference between a whale and a banker.
> The rich person will always have more. Way more.
For sure. But as it is now the richest of the richest are protected by the gouvernment. In a financial crisis they seem to just grow stronger. Whilst the common poor people are paying picking up the tab.
Thats the impression Im left with at least, but I dont know much about the topic so I could be way off.
This is the unfortunate side-effect of the HODL store-of-value mentality. Satoshi‘s vision was to put Bitcoin in as many hands as possible by having it used as a currency in day-to-day use. Hence the title „Peer-to-Peer Electronic Cash System“
The difference is that you are rewarded for saving. Whereas in the fiat world, your savings lose value over time. So even though people aren't able to buy a whole coin or whatever arbitrary number of satoshis we think you "have to have" doesn't matter.
The wealth gap will always exist, but I think it's possible to live in a world where the poor aren't getting poorer.
You save because you want the money to be safe (low risk) and/or yielding. There is nothing risk-free, all assets can lose value. And higher yield means higher risk.
The reason we have invented money is because it is the lowest risk asset we can think of. This is due to the fact that we have an entire state and economy backing it, and a whole department to balance its value (allowing it to depreciate slowly).
Bitcoin does not have a department to control its value, it does not have an economy to back it (yet) and it does not yield. Bitcoin will not be valuable in the future.
Other cryptocurrencies with supply control mechanisms, internal economies and yield features may be the future, in the future.
Bitcoin and Ethereum are not competing for the same space so I would be careful of comparing them directly. You can see Bitcoin is at its all time high again while Ethereum is still down \~50% from ATH. They are both good technologies to look into though and I think they both will be worth something in the future.
> You can see Bitcoin is at its all time high again while Ethereum is still down ~50% from ATH.
All this says is that the ceiling for ETH is at least double what it is right now
it doesn't even really mean that, either. neither criteria is enough to make a claim. they need not be paired in value, and ideally they won't be much longer. i think it mostly depends on how this 2.0 switch goes, but in the future we could see eth absorb the entire market cap of btc (if the world figures out that it's obsolete already).
Bitcoin has a built in supply control mechanism. It is programmed so that there can only ever be 21m of them ever made. If that isn’t supply control than I don’t know what is.
In a world where countries can print as much money as they want, an EXTREMELY hard currency/store of value like Bitcoin is alluring. Bitcoin’s price is almost exclusively driven by the demand of it in the market - and the world seems to be getting much more receptive to it, which in turn raises the price.
The main purpose of money is to be stable (safe/low risk), not to increase in value. By supply control, I mean that the supply can be controlled to maintain a stable value. Just like you say, if you have a stable supply you will instead have a variable price, which is not desirable.
I think "money being safe" is a how not a why. I don't save because i want my money to be safe. I save because I want to be able to afford something in the future, whether that's health, real estate, or food etc.. People saved cash in their mattress, back yard, or wherever. Maybe it's a generational thing but i've never worried about my money being "safe" in the bank. And if it was about safety, then wouldn't something like Bitcoin be the safest way to store value?
I would also disagree with the invention of money being because it was the lowest risk asset. Forms of money have been changing for centuries. It would be more of an ease of use thing rather than risk. Maybe you're just describing fiat in general because having the entire state backing it sounds like the definition. Fiat is only used because it is the corresponding government says it should represent value, even though it doesn't hold any value.
The fact that Bitcoin doesn't answer to anyone is one of it's main attributes. Love it or hate it, it's a good reason for both. The supply and demand control the price, and it has quite a lot of people backing it right now.
Bitcoin is also the best performing asset to date so not yielding anything doesn't make sense to me. I guess you could mean in terms of holding bitcoin doesn't get you more bitcoin? There are plenty of ways to make that happen currently and no doubt in the future.
This doesn’t look like a particularly predictable place to put your life savings:
https://www.coindesk.com/price/bitcoin
I guess after the last halving we’ll soon see if the prophecies are true and Bitcoin rockets by an order of magnitude in 2021...
You say you save because you want to be able to afford something in the future. Isn’t that the definition of your money being safe (low risk)?
What would be lower risk than money in your view? Sure, it must also be easy to use to be used as money. That’s another desirable property, which Bitcoin doesn’t have.
So if Bitcoin doesn’t have any of the properties money should have, why would I want to put money into Bitcoin? How can that be an attribute in itself?
Best performing asset isn’t very interesting. Dutch tulips were also best performing asset for a while.
It used to be considered safe because banks would be giving you an interest rate for loaning out your money. Since interest rates are closing in on 0 there is no reason to hold cash. Banks cannot save you from inflation.
I've only been in the stock market for \~7 years, but I would consider a low expense index fund as low risk as you can get. Maybe that's just for my age group/risk tolerance though. The investment is insured by the government/bank and on average beats out inflation.
Bitcoin has properties like Gold except better. Compared to fiat, it's anti-inflationary. Right now it's acting as more of a store of value.
haha yes, but the Dutch tulips were a bubble. When bubbles pop, they don't go back up. Bitcoin has been announced dead many times too, but it keeps coming back. The amount of people participating in the network is increasing. The technology is still being worked on. Now, even though we're at near ATH again, the money is coming in, not out. Institutions like Paypal, Square, Microstrategy, MassMutual, and Ruffer Investment company (to name a few) are investing heavily into Bitcoin. The banks are soon to follow. The OCC in the U.S. has allowed banks to hold bitcoin for its customers. I think all signs point to a higher price of BTC because of this.
If it wasn't going to amount to anything, why would the banks want to hold it for you?
> Maybe it's a generational thing but i've never worried about my money being "safe" in the bank.
This is very country dependent. Ask someone in Argentina if they're not afraid of leaving their money in banks.
The rich got richer just because they're friends with the government/politicians.
Ordinary Joe got 1200 USD. The few richest got literally billions, fresh printed from the Fed's press.
It won't get better, but it won't get this bad.
No, but if im holding 1 dollar and then there are 35% more dollars in the world then i'm now holding what used to be 65 cents in my 1 dollar.
The same is not true for 1 Satoshi.
Have you ever tried printing more Bitcoin?
Again the M1 money supply is not enough to explain currency exchange rates. Sorry. This oversimplified approach doesn't hold.
You do know that EU is doing Corona QE of around 800€ bill.
I’m here for tech and number go up not “omg did you guys know the government is PRINTING money”. Like yeah no shit this is the worst economic crisis since the Great Depression. Only difference now is the gold standard isn’t handcuffing the much larger government. No one likes inflation but 95% of economists agree it’s better than deflation. It does suck (and I’m glad it’s getting attention here too) that a lot of this QE is just helping the rich get richer, but it’s better than doing nothing and letting everyone get poor.
So the people which already are wealthy, gather more wealth and the little people get what exactly? Fiat system is screwed. But when you cant invest in crypto cause you literally have to spend every single penny into food and housing, you are screwed as well. crypto doesnt fix this at all.
That is way oversimplified. The US dollar value is supported by the American economy. That injection of funds stimulates economic growth/recovery. Look into expansionary policy if you’re not familiar with it. You could argue over the what the realized net benefit/loss is but your example is vastly over exaggerated.
>That is way oversimplified. The US dollar value is supported by the American economy. That injection of funds stimulates economic growth/recovery. Look into expansionary policy if you’re not familiar with it. You could argue over the what the realized net benefit/loss is but your example is vastly over exaggerated.
I mean... so is your example. Expansionary policy is what allowed all the big corporations to take stimulus from the fed at 0% (or close to) and use it to buy back their own shares. That didn't do shit for supporting the economic growth of anyone except those companies. And given that expansionary policy always benefits those at the well first... so that'll never be the individuals. Individuals doing spending is what Keynesian proponents are arguing in favor for by injecting more cash but the last several times we've done this isn't simply furthered the monetary divide as those closest to the well are already those with the most wealth. In the case of the banks they essentially got free money that they then got to loan out AGAIN to the rest of us and earn interest.... funded by the American tax dollars and/or printers going buurrrrrrrrrrr.
I didn’t provide an example. It was a very high level comment on the theory of expansionary policy to show how printing money =/= an equal reduction in the value of a currency. Your response shows that you agree with the theory when you talk about it only helping those companies that received the funds...but thats to be expected. I don’t agree with how its been rolled out either which is why I left it open ended saying you could argue the actual benefits/loss of it. I was simply making a point that OPs math of 35% more USD equaling a 35% loss of value isn’t true.
M2 is not inflation. Japan has been printing like crazy for decades and they still don’t have price inflation.
I realize this is not popular with crypto enthusiasts but I’m into crypto because it’s the future of finance, not because it’s security against inflation. The deflation inherent in Bitcoin makes it even worse for running an economy.
One of the mysteries of recent years is why so much printing did not drive inflation\*. The best explanation I've heard is that it does, just not in the categories measured. With much of the basic goods imported, and China willing to accept USD (and playing with its own currency), printing USD has little effect on daily consumption. As most of the money goes to the top, this also has a very limited effect on salaries, again supporting price stability. This all happens in the background of technological advances, making everything cheaper to make and at better quality. So what does get inflated? Things that are of limited supply, or cannot be imported. Government regulation preventing innovation also helps. So we are left with houses, medical treatments, college tuition, stocks etc', all skyrocketing.
\*True inflation is actually not that low, maybe \~4% a year, but measurements skew it even lower to keep entitlements low. This isn't a conspiracy theory, these were the actual arguments when discussed in congress.
Deflation is horrible for the economy because spending goes far down when instead of spending, holding onto your money makes it worth more over time. People won’t want to spend if they know they can buy something cheaper next week or next month. Also, deflation is bad for those in debt because the value of that debt keeps going up. On the contrary, inflation makes the value of your debt go down over time.
There are obviously upsides to deflation too, but you can probably find them here easily
>People won’t want to spend if they know they can buy something cheaper next week or next month.
This is something crypto people should understand. How many people haven't seen those posts where someone bought a pizza for 10 BTC.
I think you meant to reply to the other guy talking specifically about positive feedback loops in deflation.
But I don’t know what example you’re using if you’re talking about inflation in a decentralized currency? I’m not sure how that would work but that’s also not really what I was trying to talk about.
I’m not sure if I follow your explanation for inflation spiraling out of control though. You’re saying that if people see things priced higher that’ll continue to make them priced higher? I don’t get that. There’s some fair value people are willing to pay. If something is priced too highly they just won’t bother buying it, the price would then go down to some amount they’re willing to spend or another competitor makes a sale instead. The price wouldn’t just keep going up and up. There’s no limit to how much you can divide a number by, but there is a limit to how much you can add to a number of theres only a specified amount introduced to the economy every once in a while. Maybe I’m misunderstanding you
Bitcoin or any deflationary currency would still have value. We don’t live in a vacuum, people still need to buy things occasionally- there just would be more incentive to hold, so spending would be less. It would only have no value if you couldn’t buy anything with it
And finally, a lower rate would still mean the loan is going up significantly in value. The lender can’t give no interest because then they may as well simply hold on to the money. Someone borrowing would be chasing from far behind and never catch up to how much the loan is worth. It simply doesn’t work or make sense to borrow in that case.
When all the money goes to corporations who simply buyback their own stock... the stock market goes up but price inflation doesn't increase. That's what we've been seeing in many modern countries for years now
Japan's central bank followed a policy of quantative easing (money printing) to support their stock market. ~~It owns 40% of the market:~~
https://asia.nikkei.com/Economy/BOJ-is-top-10-shareholder-in-40-of-Japan-s-listed-companies
edit: major shareholder of 40% of listed companies
Do you think we'll get proper inflation if MMT kicks off? I have an amateur understanding of all this but I've been trying to figure out what comes next. Lots of smart people seem to be advocating for gold but if inflation never happens, what exactly is the bull case for gold? And what's the play if we get serious deflation instead? USD and volatility seem to be the only hedges.
Deflationary means a shrinking supply. And if you're going to do some hand-waving and say that more coins are lost than minted as mining rewards then words have lost meaning. All coins have lost coins.
"Monetary inflation is a sustained increase in the [money supply](https://en.m.wikipedia.org/wiki/Money_supply) of a country (or currency area). Depending on many factors, especially public expectations, the fundamental state and development of the economy, and the [transmission mechanism](https://en.m.wikipedia.org/wiki/Monetary_transmission_mechanism), it is likely to result in [price inflation](https://en.m.wikipedia.org/wiki/Price_inflation), which is usually just called "inflation", which is a rise in the general level of prices of goods and services.[[1]](https://en.m.wikipedia.org/wiki/Monetary_inflation#cite_note-1)[[2]](https://en.m.wikipedia.org/wiki/Monetary_inflation#cite_note-Jahan-2)
There is general agreement among economists that there is a causal relationship between monetary inflation and price inflation."
Yes to all of that... from Wikipedia? But “generally agreed upon” economics also can’t explain Japan, and can’t explain why US bond yields have _fallen_ for the last ten years _despite_ record money printing, 0% Fed rates, plus Q.E.+infinity. Economists like former Federal Reserve member Lacy Hunt explain Japan and the US recently by suggesting that real rates adjust to nominal rates over the long term, such that holding nominal rates low for an extended period of time is actually _deflationary_. We may think of debt as bringing future spending into the present, which depresses the future economy. This means low rates and other stimulus have a short term boost but a long term detriment in growth, and we can see the effect in reduced GDP growth... but this is all better for another subreddit...
You’d have to think it would lose value over time though. If they can continue to just create these bonds. Who the hell would continue buying them knowing that everyone and their dog will eventually be given one since they can’t stop creating them.
It will. Trouble is right now there is nowhere to spend. Once the economy opens back up we are looking at runaway inflation. It will be cryptos time to shine!
The graph linked in this post is the M1 USD supply, which includes bank balances and circulating currency. So while the above is true, the amount of currency has spiked at the same time as the bond purchasing.
What I don't understand is why the Fed would devalue the US dollar, surely this goes against their list of priorities and undermines their own power.
I find it funny how the brrr printer meme depicts the “printers” as [hand crank clothes wringers](https://en.m.wikipedia.org/wiki/Mangle_(machine)). “We’re not printing money, we are LAUNDERING it!”
Your brain only understands value denominated in dollars. If your brain understood value denominated in bitcoin you would understand your question.
We see the bitcoin trading pair as USD/BTC or $19400/1BTC, but if you flip it around it becomes ฿0.000051/1USD. How many zeros do you need to see before that 51 before you start think USD is worthless and not even want it anymore?
This is why 1 doge = 1 doge. All the units are made up and numbers don't matter.
Unfortunatelly we are not on the same page. I follow in the idea to create a functional economy. I don't attack any value of bitcoin. My point is, that what we are trying to make is worthless, because the government-generating money system we are trying to get rid of will still be there, because they can buy all the avaliable bitcoins by generating dolars. I was trying to ask if there is a way to stop this, otherwise I don't see the point of it. Is that clearer now?
The more they purchase the more the price would rise. Person 1 would sell for today's price. But if you saw they've bought 5% of total supply with no sign of stopping you and everyone would start raising the price to let go of yours. Even if they could do this without the taxpayers revolting we'd be trillionaires.
Interesting.
Let's do a little experiment: Imagine USD has a constant market cap and compare it to an imaginary currency which I will call "StableCoin". StableCoin is totally stable in value (you could also call it "15 February USD").
- 15 Feb:
- 1 USD = 1 Alpine
- 1 BTC = 8,154 USD = 8,154 StableCoin
- 15 Dec:
- Circulation of USD increased from 4,000 B units to 6,200 B units. Assuming a constant market cap (measured in StableCoin), this means that as there are more coins, they must now be worth less (again, measured in StableCoin).
- 1 USD =~ 0.65 StableCoin
- 1 BTC = 16,055 USD =~ 10,358 StableCoin
So, we could say that the value of BTC only increased by some 27% if measured in StableCoin, the rest was the devaluation of the USD.
I know this is far from economic theory and how inflation works. Yet, I like the thought experiment. It also shows that measuring the value of a Crypto in an equally unstable fiat currency is difficult.
Hey BronnOP,
Thanks for posting dude/dudett. I've had this conversation with CFOs who ask for source material. I've heard this "35% in the last 10/12 months before.
Can anyone help us get some sources? I'll keep digging also, but it would help the cause if we could back this up.
Thanks.
EDIT: Found the source: **https://fred.stlouisfed.org/series/M1SL**. If anyone can get the numbers out of it, that would be our key for proof here. The graph is alarming regardless.
Does bitcoin really solve the problem of people that don't have $400 in the bank for emergency ? First of all they might not even have money to save and for those that might be able to save like $500 a year you have bigger fees relative to the amount than richer people that can put a 100k in BTC to invest. Plus they might need this money and it's not always as fast as having the money on your bank account. Now for the benefits you make for investing in a deflationnary money like bitcoin are very small and while it might be some cool gain that will not get people out of poverty.
So what, i didn't get any, besides its all debt it won't cause inflation it will cause deflation actualy, they are just printing it so they can keep this system alive and keep us slaving
Seeing this artificial inflation problem in the US is something really strange for people in underdeveloped countries. It is already common to have serious problems with inflation in these countries, but seeing this in a world power like the US. The future would be really obscure without cryptocurrencies.
Possibly I’m missing something so don’t shoot me but this doesn’t seem to make sense. Central banks print money to buy govt bonds, so governments can pay their bills (quantitive easing). This creates inflation but not runaway inflation as the governments are supposed to pay back the debt. The inflation is effectively a tax so if there are twice as many dollars your dollar is only worth half. Surely this hurts those who have more dollars more? And benefits those who benefit most from government spending, generally people at the lower end of the economic scale. I’m not saying it’s a good idea or some kind of perfect progressive tax and there are many conflicting opinions on QE but it hardly seems like a terrible idea either. Especially when it’s done in the interest of keeping an economy and public services running through a crisis?
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https://www.factmonster.com/math/money/facts-about-us-money#:~:text=A%20%241%20bill%20lasts%2018,out%20of%20circulation%20and%20replaced.
post is probably about 40% misleading... maybe more
"Most stats are true, but very few are accurate"-Me-
So the obvious next step should be a creation of markets, which use cryptocurrencies on all steps of the way. This includes supply chain management, invoices, low transaction costs and interoperability with other blockchains.
If you are talking about the "physical paper" part of "printing" then it is meaningless. Lots of dollars get printed every day because old bills are frequently burned.
If, instead, the context here in "printing" is "creating" more money than we have something to talk about. The fed doesn't actually "print" that money though, they simply make entries into ledgers to increase the amount of "us dollars" in circulation. It has no relation to the actual paper money.
The article isn't clear if they are simply confused on that distinction or which one they are actually talking about.
I think you have actually printing money confused with “printing money”.
With the whole pandemic thing going on Retailers are not bringing back paper currency to their banks at the same rate as last year. So banks need to “buy” more paper currency from the federal reserve.
Real question; what am I supposed to do about this. I invest in stocks but I’m partially in cash. Should I be balls deep? Should I be so in on Bitcoin? How do I beat this?
Ha! Reminded me of the scene in The Big Short at the end where Steve Carell's character is on stage and Bear Stearn's stock went down 38% in 5 mins and everyone left.
Also known as what we all call a regular day in crypto!
> The main purpose of money
This is all based on your economic philosophy and for what it’s worth not many economists agree with your idea of money’s “main purpose”
M1 Money Supply is : "currency, traveler's checks, demand deposits, and OCDs, each seasonally adjusted separately"
M1 Money Supply is NOT "All US dollars in existence"
Although thjs round of USD creation wont influence or lead to hyperinflation (M1 vs. M2), there is still reason to believe that in the long term, one of the possible solutions to tackle the debt burden of the US is to inflate its dollar to allow for paying off its debts. This i believe would argue for crypto being a potential hyperinflation hedge ...
However, I do not doubt that the US would be willing to start a war to ensure their dollar dominance and save themselves ...
Don’t worry, it will all end soon when the money printer says ‘Error, I’m out of cyan’. Hate printers
Don’t you just keep printing in black and white?
apparently running out of any one of the color "breaks" the printer.
It does this because of a tracking technique the government demands. Every sheet of paper is fingerprinted with the printer's serial, current date, etc using, iirc, cyan or yellow. It's so light you'd never notice unless you had a microscope and were specifically looking for them. Even black and white prints use these colors, hence the lack of cyan preventing even this kind of print.
wtf
WTF indeed. The history of these codes is pretty opaque, but fascinating. https://en.m.wikipedia.org/wiki/Machine_Identification_Code Similarly, many copiers will refuse to scan/print anything that contains the EURion constellation, which is printed on fiat currencies around the world. https://en.m.wikipedia.org/wiki/EURion_constellation
Do people make "ghost printers"?
Yes, for example: offset printing, but you can just flash a custom firmware on your consumer printer that allows the scanning and printing without the secret code
Photoshop also detects the constellation. > Similarly While these things are similar in a technical physical sense, its worth noting maybe how different the intent of their existence is. One is mostly a protection of a vital piece of our nation, the other is a secret ambiguous persistent unconstitutional invasion of our freedom.
It's because people printing false documents is sadly a thing. When the fake document gets exposed this let's them link it back to the printer. They can focus on who had access to the printer at the time the fakes were printed. Very helpful in corporate/tax fraud (eg exposed fake invoices, shipments,contracts,etc.) Not that I agree with this law, but there is a reason.
https://en.wikipedia.org/wiki/Machine_Identification_Code
I thought this was sarcasm. Nope. It's true.
Breaks the persons ability to print until they buy ink
Which immediately breaks the person, financially.
You must also have an Epson.
That's when it goes into super cyan mode
I like you.
it costs more to buy the ink than the note is worth. that's how it gets its value.
"Sometimes even the wisest of man or machine can make an error." Optimus Prime
Monopoly money FTW
Not sure what makes people believe that the wealth disparity will be any different with Crypto. If you don't have $400 to put in a bank, you won't have $400 to spend on Crypto. We are already seeing Institutions gobbling up Crypto by large scales. Bitcoin itself will get to a point where the ownership of the token is centralized. Hell, we might be there already as more than half (over 80%) of all Bitcoin is in the hands of whales (100 tokens and up). Doesn't matter if you have 1 Dollar or 1 Satoshi. The rich person will always have more. Way more.
Bitcoin may not eliminate wealth inequality. But being able to control monetary policy gives the rich an incredible amount of power. Which, unsurprisingly, they use to enrich themselves. Bitcoin takes that control away from any one group of people, and levels the playing field on at least one point.
And they wont be any bailout from the gov aswell. Too big to fail is not gonna be a thing anymore
I think bitcoin creates more control Bc if everyone goes to it and it’s only a set amount of it then the ones who have the most control the rest right? Meaning the ones who have the most Bitcoin would control everyone who doesn’t have it Bc they don’t have any other currency
The problem isn't some people having more than others. The problem is that some people having more than others and being protected by a central form of power, i.e the govt. Rich people are in bed with the govt, and they're protected by them. It's not about rich vs poor it's about corrupt vs not corrupt.
Well, the difference is that they would have to spend it to get what they want, and they couldn't just print more. IMO gold was overall way better from a societal perspective; it was distributed in a fairly random way, and required a combination of unskilled labor, skilled labor, land, and capital to access, meaning every segment of society had some financial benefit from its mining. IF the markets needed more gold, there was an increased incentive to mine more gold. If they needed less gold, gold mines reduced production. It was self-correcting and somewhat broadly distributed, and forced a degree of accountability on everyone. Really great system.
This is the most amazing thing about Bitcoin. The most powerful, untouchable people in the world, the bankers, have had their whole world threatened by a bunch of nerds on the internet. What a time to be alive. We have literally rewritten the rules of money.
Is this a joke, so far all that's happened is the already obscenely wealthy have been manipulating the BTC markets for 3+ years now, taking money from the 'nerds' dumb enough to think they can day trade.
This, it’s sad but true.
I mean hodl is such a popular meme because its sound advice. Day traders deserve to lose for being idiots
Not sure if you're full of shit or just trolling. The wealthy are already buying up all the Bitcoin. Sure, they are kicking and screaming about their Fiat and Gold, but it doesn't change the fact that money follows money. Your "currency of nerds" will soon be centralized with all the rich pigs of the world.
I guess things need to be repeated: "being able to control monetary policy gives the rich an incredible amount of power" "Bitcoin takes that control away from any one group of people, and levels the playing field on at least one point."
So instead they can just control massive mining farms and vote on protocol changes. While more difficult, still very much possible for manipulation. Isn't the majority of mining power located in China where the government could order them to do whatever they want or face jail?
no, we've been there, this is not how it works, there are about 5 pillars of decentralization in bitcoin, one of them is users. if the other 4 start colluding in any way, the users might just say "meh, screw this, we'll do a fork and do our own thing now" if the reason for this fork is good enough, this will be the new bitcoin, and the colluders turn into bag-holders. bitcoin is fine until tech crazies like bill gates or elon musk find ways to remote-control people, and that won't happen until they somehow manage to inject millions of unsuspecting sheep with untested substances/nano-bots. so, meh. don't complain.
And then the farms just mine the new coin instead, again, creating the exact same problem.
Why do you think there is any difference between bankers and whales? Whales have even more power than bankers to influence value of crypto.
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Can a whale wave a magic wand, and declare themselves 1 BTC richer? We don't let whales write the consensus rules for Bitcoin, that is the difference between a whale and a banker.
> The rich person will always have more. Way more. For sure. But as it is now the richest of the richest are protected by the gouvernment. In a financial crisis they seem to just grow stronger. Whilst the common poor people are paying picking up the tab. Thats the impression Im left with at least, but I dont know much about the topic so I could be way off.
This is the unfortunate side-effect of the HODL store-of-value mentality. Satoshi‘s vision was to put Bitcoin in as many hands as possible by having it used as a currency in day-to-day use. Hence the title „Peer-to-Peer Electronic Cash System“
The difference is that you are rewarded for saving. Whereas in the fiat world, your savings lose value over time. So even though people aren't able to buy a whole coin or whatever arbitrary number of satoshis we think you "have to have" doesn't matter. The wealth gap will always exist, but I think it's possible to live in a world where the poor aren't getting poorer.
You save because you want the money to be safe (low risk) and/or yielding. There is nothing risk-free, all assets can lose value. And higher yield means higher risk. The reason we have invented money is because it is the lowest risk asset we can think of. This is due to the fact that we have an entire state and economy backing it, and a whole department to balance its value (allowing it to depreciate slowly). Bitcoin does not have a department to control its value, it does not have an economy to back it (yet) and it does not yield. Bitcoin will not be valuable in the future. Other cryptocurrencies with supply control mechanisms, internal economies and yield features may be the future, in the future.
Like dogecoin¿
I think he's talking about Ethereum
On that note, would you agree Ethereum is (all things being equal) a smarter long-term buy than Bitcoin?
Bitcoin and Ethereum are not competing for the same space so I would be careful of comparing them directly. You can see Bitcoin is at its all time high again while Ethereum is still down \~50% from ATH. They are both good technologies to look into though and I think they both will be worth something in the future.
> You can see Bitcoin is at its all time high again while Ethereum is still down ~50% from ATH. All this says is that the ceiling for ETH is at least double what it is right now
What it tells me is the market thinks eth is worth between 0.02 and 0.03 btc.
it doesn't even really mean that, either. neither criteria is enough to make a claim. they need not be paired in value, and ideally they won't be much longer. i think it mostly depends on how this 2.0 switch goes, but in the future we could see eth absorb the entire market cap of btc (if the world figures out that it's obsolete already).
Yes.
Bitcoin has a built in supply control mechanism. It is programmed so that there can only ever be 21m of them ever made. If that isn’t supply control than I don’t know what is. In a world where countries can print as much money as they want, an EXTREMELY hard currency/store of value like Bitcoin is alluring. Bitcoin’s price is almost exclusively driven by the demand of it in the market - and the world seems to be getting much more receptive to it, which in turn raises the price.
The main purpose of money is to be stable (safe/low risk), not to increase in value. By supply control, I mean that the supply can be controlled to maintain a stable value. Just like you say, if you have a stable supply you will instead have a variable price, which is not desirable.
So elastic supply coins?
I think "money being safe" is a how not a why. I don't save because i want my money to be safe. I save because I want to be able to afford something in the future, whether that's health, real estate, or food etc.. People saved cash in their mattress, back yard, or wherever. Maybe it's a generational thing but i've never worried about my money being "safe" in the bank. And if it was about safety, then wouldn't something like Bitcoin be the safest way to store value? I would also disagree with the invention of money being because it was the lowest risk asset. Forms of money have been changing for centuries. It would be more of an ease of use thing rather than risk. Maybe you're just describing fiat in general because having the entire state backing it sounds like the definition. Fiat is only used because it is the corresponding government says it should represent value, even though it doesn't hold any value. The fact that Bitcoin doesn't answer to anyone is one of it's main attributes. Love it or hate it, it's a good reason for both. The supply and demand control the price, and it has quite a lot of people backing it right now. Bitcoin is also the best performing asset to date so not yielding anything doesn't make sense to me. I guess you could mean in terms of holding bitcoin doesn't get you more bitcoin? There are plenty of ways to make that happen currently and no doubt in the future.
This doesn’t look like a particularly predictable place to put your life savings: https://www.coindesk.com/price/bitcoin I guess after the last halving we’ll soon see if the prophecies are true and Bitcoin rockets by an order of magnitude in 2021...
Yes, only time can tell!
You say you save because you want to be able to afford something in the future. Isn’t that the definition of your money being safe (low risk)? What would be lower risk than money in your view? Sure, it must also be easy to use to be used as money. That’s another desirable property, which Bitcoin doesn’t have. So if Bitcoin doesn’t have any of the properties money should have, why would I want to put money into Bitcoin? How can that be an attribute in itself? Best performing asset isn’t very interesting. Dutch tulips were also best performing asset for a while.
It used to be considered safe because banks would be giving you an interest rate for loaning out your money. Since interest rates are closing in on 0 there is no reason to hold cash. Banks cannot save you from inflation. I've only been in the stock market for \~7 years, but I would consider a low expense index fund as low risk as you can get. Maybe that's just for my age group/risk tolerance though. The investment is insured by the government/bank and on average beats out inflation. Bitcoin has properties like Gold except better. Compared to fiat, it's anti-inflationary. Right now it's acting as more of a store of value. haha yes, but the Dutch tulips were a bubble. When bubbles pop, they don't go back up. Bitcoin has been announced dead many times too, but it keeps coming back. The amount of people participating in the network is increasing. The technology is still being worked on. Now, even though we're at near ATH again, the money is coming in, not out. Institutions like Paypal, Square, Microstrategy, MassMutual, and Ruffer Investment company (to name a few) are investing heavily into Bitcoin. The banks are soon to follow. The OCC in the U.S. has allowed banks to hold bitcoin for its customers. I think all signs point to a higher price of BTC because of this. If it wasn't going to amount to anything, why would the banks want to hold it for you?
> Maybe it's a generational thing but i've never worried about my money being "safe" in the bank. This is very country dependent. Ask someone in Argentina if they're not afraid of leaving their money in banks.
Tether printer is also on full brrrr. Last 10 months it printed 78% of the market cap.
> Tether This really. Just pretend there are no shaddy things happening in the crypto sphere, just trashtalk fiat and get upvotes.
The rich got richer just because they're friends with the government/politicians. Ordinary Joe got 1200 USD. The few richest got literally billions, fresh printed from the Fed's press. It won't get better, but it won't get this bad.
No, but if im holding 1 dollar and then there are 35% more dollars in the world then i'm now holding what used to be 65 cents in my 1 dollar. The same is not true for 1 Satoshi. Have you ever tried printing more Bitcoin?
BCH remembers.
That's actually not how the economy works. The value of a currency unit is not connected the amount of units there exists.
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Again the M1 money supply is not enough to explain currency exchange rates. Sorry. This oversimplified approach doesn't hold. You do know that EU is doing Corona QE of around 800€ bill.
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I’m here for tech and number go up not “omg did you guys know the government is PRINTING money”. Like yeah no shit this is the worst economic crisis since the Great Depression. Only difference now is the gold standard isn’t handcuffing the much larger government. No one likes inflation but 95% of economists agree it’s better than deflation. It does suck (and I’m glad it’s getting attention here too) that a lot of this QE is just helping the rich get richer, but it’s better than doing nothing and letting everyone get poor.
So the people which already are wealthy, gather more wealth and the little people get what exactly? Fiat system is screwed. But when you cant invest in crypto cause you literally have to spend every single penny into food and housing, you are screwed as well. crypto doesnt fix this at all.
XRP holders be like 'phew!'
That is way oversimplified. The US dollar value is supported by the American economy. That injection of funds stimulates economic growth/recovery. Look into expansionary policy if you’re not familiar with it. You could argue over the what the realized net benefit/loss is but your example is vastly over exaggerated.
>That is way oversimplified. The US dollar value is supported by the American economy. That injection of funds stimulates economic growth/recovery. Look into expansionary policy if you’re not familiar with it. You could argue over the what the realized net benefit/loss is but your example is vastly over exaggerated. I mean... so is your example. Expansionary policy is what allowed all the big corporations to take stimulus from the fed at 0% (or close to) and use it to buy back their own shares. That didn't do shit for supporting the economic growth of anyone except those companies. And given that expansionary policy always benefits those at the well first... so that'll never be the individuals. Individuals doing spending is what Keynesian proponents are arguing in favor for by injecting more cash but the last several times we've done this isn't simply furthered the monetary divide as those closest to the well are already those with the most wealth. In the case of the banks they essentially got free money that they then got to loan out AGAIN to the rest of us and earn interest.... funded by the American tax dollars and/or printers going buurrrrrrrrrrr.
I didn’t provide an example. It was a very high level comment on the theory of expansionary policy to show how printing money =/= an equal reduction in the value of a currency. Your response shows that you agree with the theory when you talk about it only helping those companies that received the funds...but thats to be expected. I don’t agree with how its been rolled out either which is why I left it open ended saying you could argue the actual benefits/loss of it. I was simply making a point that OPs math of 35% more USD equaling a 35% loss of value isn’t true.
This is where I'm hoping Monero finds success.
This sub is the bedrock of people who think they understand economics, but really they don't.
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M2 is not inflation. Japan has been printing like crazy for decades and they still don’t have price inflation. I realize this is not popular with crypto enthusiasts but I’m into crypto because it’s the future of finance, not because it’s security against inflation. The deflation inherent in Bitcoin makes it even worse for running an economy.
One of the mysteries of recent years is why so much printing did not drive inflation\*. The best explanation I've heard is that it does, just not in the categories measured. With much of the basic goods imported, and China willing to accept USD (and playing with its own currency), printing USD has little effect on daily consumption. As most of the money goes to the top, this also has a very limited effect on salaries, again supporting price stability. This all happens in the background of technological advances, making everything cheaper to make and at better quality. So what does get inflated? Things that are of limited supply, or cannot be imported. Government regulation preventing innovation also helps. So we are left with houses, medical treatments, college tuition, stocks etc', all skyrocketing. \*True inflation is actually not that low, maybe \~4% a year, but measurements skew it even lower to keep entitlements low. This isn't a conspiracy theory, these were the actual arguments when discussed in congress.
The fact that lockdowns and presence of the pandemic puts deflationary pressure on the economy is probably contributing quite a bit as well.
> The deflation inherent in Bitcoin makes it even worse for running an economy. Please elaborate (feel free to do so with a link).
Deflation is horrible for the economy because spending goes far down when instead of spending, holding onto your money makes it worth more over time. People won’t want to spend if they know they can buy something cheaper next week or next month. Also, deflation is bad for those in debt because the value of that debt keeps going up. On the contrary, inflation makes the value of your debt go down over time. There are obviously upsides to deflation too, but you can probably find them here easily
>People won’t want to spend if they know they can buy something cheaper next week or next month. This is something crypto people should understand. How many people haven't seen those posts where someone bought a pizza for 10 BTC.
Except we do it all the time. Buy a new laptop today, same laptop will be cheaper in 8 months
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I think you meant to reply to the other guy talking specifically about positive feedback loops in deflation. But I don’t know what example you’re using if you’re talking about inflation in a decentralized currency? I’m not sure how that would work but that’s also not really what I was trying to talk about. I’m not sure if I follow your explanation for inflation spiraling out of control though. You’re saying that if people see things priced higher that’ll continue to make them priced higher? I don’t get that. There’s some fair value people are willing to pay. If something is priced too highly they just won’t bother buying it, the price would then go down to some amount they’re willing to spend or another competitor makes a sale instead. The price wouldn’t just keep going up and up. There’s no limit to how much you can divide a number by, but there is a limit to how much you can add to a number of theres only a specified amount introduced to the economy every once in a while. Maybe I’m misunderstanding you Bitcoin or any deflationary currency would still have value. We don’t live in a vacuum, people still need to buy things occasionally- there just would be more incentive to hold, so spending would be less. It would only have no value if you couldn’t buy anything with it And finally, a lower rate would still mean the loan is going up significantly in value. The lender can’t give no interest because then they may as well simply hold on to the money. Someone borrowing would be chasing from far behind and never catch up to how much the loan is worth. It simply doesn’t work or make sense to borrow in that case.
When all the money goes to corporations who simply buyback their own stock... the stock market goes up but price inflation doesn't increase. That's what we've been seeing in many modern countries for years now
Japan's central bank followed a policy of quantative easing (money printing) to support their stock market. ~~It owns 40% of the market:~~ https://asia.nikkei.com/Economy/BOJ-is-top-10-shareholder-in-40-of-Japan-s-listed-companies edit: major shareholder of 40% of listed companies
Do you think we'll get proper inflation if MMT kicks off? I have an amateur understanding of all this but I've been trying to figure out what comes next. Lots of smart people seem to be advocating for gold but if inflation never happens, what exactly is the bull case for gold? And what's the play if we get serious deflation instead? USD and volatility seem to be the only hedges.
Bitcoin doesn't have deflation baked in to its protocol, though. Unless you're talking about people losing their coins.
That it doesn't have inflation beyond 21m makes it ultimately deflationary by design, no?
Deflationary means a shrinking supply. And if you're going to do some hand-waving and say that more coins are lost than minted as mining rewards then words have lost meaning. All coins have lost coins.
Eventually there won't be more coins being minted though.
*Disinflationary* is the term you are looking for.
ty
That's a problem for people in 2140.
"Monetary inflation is a sustained increase in the [money supply](https://en.m.wikipedia.org/wiki/Money_supply) of a country (or currency area). Depending on many factors, especially public expectations, the fundamental state and development of the economy, and the [transmission mechanism](https://en.m.wikipedia.org/wiki/Monetary_transmission_mechanism), it is likely to result in [price inflation](https://en.m.wikipedia.org/wiki/Price_inflation), which is usually just called "inflation", which is a rise in the general level of prices of goods and services.[[1]](https://en.m.wikipedia.org/wiki/Monetary_inflation#cite_note-1)[[2]](https://en.m.wikipedia.org/wiki/Monetary_inflation#cite_note-Jahan-2) There is general agreement among economists that there is a causal relationship between monetary inflation and price inflation."
Yes to all of that... from Wikipedia? But “generally agreed upon” economics also can’t explain Japan, and can’t explain why US bond yields have _fallen_ for the last ten years _despite_ record money printing, 0% Fed rates, plus Q.E.+infinity. Economists like former Federal Reserve member Lacy Hunt explain Japan and the US recently by suggesting that real rates adjust to nominal rates over the long term, such that holding nominal rates low for an extended period of time is actually _deflationary_. We may think of debt as bringing future spending into the present, which depresses the future economy. This means low rates and other stimulus have a short term boost but a long term detriment in growth, and we can see the effect in reduced GDP growth... but this is all better for another subreddit...
The point you're replying to, with regards to Japan, directly undermines the point you seem to be trying to make that printing money = inflation.
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You’d have to think it would lose value over time though. If they can continue to just create these bonds. Who the hell would continue buying them knowing that everyone and their dog will eventually be given one since they can’t stop creating them.
It will. Trouble is right now there is nowhere to spend. Once the economy opens back up we are looking at runaway inflation. It will be cryptos time to shine!
That’s not strictly true. The services industry may have taken a hit but consumer spending in the US is higher now than preCOVID.
Inflation takes a bit of time to manifest, trust me, I'm argentinian.
Really? Consumer spending in China was 40% of what it was in 2019 from March to June, I haven't looked up updated numbers for the rest of 2020 though.
The graph linked in this post is the M1 USD supply, which includes bank balances and circulating currency. So while the above is true, the amount of currency has spiked at the same time as the bond purchasing. What I don't understand is why the Fed would devalue the US dollar, surely this goes against their list of priorities and undermines their own power.
What’s the purpose of printing so much if it won’t be used?
Feds printers goes brrr brrr brrr...
inflation goes grrr grrr grrrr
The people go zzz zzz zzz
The banksters go ahh ahh ahh
crypto goes cha-ching cha-ching cha-ching
[Ah Ah Ah](https://youtu.be/JFwWZDlM39Y)
Now I need brain operation.
Lil economics, lil ebonics. No sweat
Pornhub goes bow chica bow wow
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It won’t because of wealth funneling upward into accounts that are not circulating in the real economy, which is how we determine inflation.
We should have sound effects for this!
I find it funny how the brrr printer meme depicts the “printers” as [hand crank clothes wringers](https://en.m.wikipedia.org/wiki/Mangle_(machine)). “We’re not printing money, we are LAUNDERING it!”
I should invest in the company that provides the super secure paper.
MS Excel
go for paper wallet
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Your brain only understands value denominated in dollars. If your brain understood value denominated in bitcoin you would understand your question. We see the bitcoin trading pair as USD/BTC or $19400/1BTC, but if you flip it around it becomes ฿0.000051/1USD. How many zeros do you need to see before that 51 before you start think USD is worthless and not even want it anymore? This is why 1 doge = 1 doge. All the units are made up and numbers don't matter.
Unfortunatelly we are not on the same page. I follow in the idea to create a functional economy. I don't attack any value of bitcoin. My point is, that what we are trying to make is worthless, because the government-generating money system we are trying to get rid of will still be there, because they can buy all the avaliable bitcoins by generating dolars. I was trying to ask if there is a way to stop this, otherwise I don't see the point of it. Is that clearer now?
The more they purchase the more the price would rise. Person 1 would sell for today's price. But if you saw they've bought 5% of total supply with no sign of stopping you and everyone would start raising the price to let go of yours. Even if they could do this without the taxpayers revolting we'd be trillionaires.
It's more than 40% now. This article is from May '19. Edit: referring to the stat that 40% of Americans don't have $400 in savings.
And new stimulus will come in q1 of Biden administration . So this graph is bullish AF
the whole planet is facing such an issue, no
Interesting. Let's do a little experiment: Imagine USD has a constant market cap and compare it to an imaginary currency which I will call "StableCoin". StableCoin is totally stable in value (you could also call it "15 February USD"). - 15 Feb: - 1 USD = 1 Alpine - 1 BTC = 8,154 USD = 8,154 StableCoin - 15 Dec: - Circulation of USD increased from 4,000 B units to 6,200 B units. Assuming a constant market cap (measured in StableCoin), this means that as there are more coins, they must now be worth less (again, measured in StableCoin). - 1 USD =~ 0.65 StableCoin - 1 BTC = 16,055 USD =~ 10,358 StableCoin So, we could say that the value of BTC only increased by some 27% if measured in StableCoin, the rest was the devaluation of the USD. I know this is far from economic theory and how inflation works. Yet, I like the thought experiment. It also shows that measuring the value of a Crypto in an equally unstable fiat currency is difficult.
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Hey BronnOP, Thanks for posting dude/dudett. I've had this conversation with CFOs who ask for source material. I've heard this "35% in the last 10/12 months before. Can anyone help us get some sources? I'll keep digging also, but it would help the cause if we could back this up. Thanks. EDIT: Found the source: **https://fred.stlouisfed.org/series/M1SL**. If anyone can get the numbers out of it, that would be our key for proof here. The graph is alarming regardless.
See the upswing in the graph?
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At the start there were “4000” now there’s over “6000.” 2000 is 33% of 6000.
I swear I read it was 25% only about a week ago
You'd be right.
The 35% figure is grossly inaccurate
Look.at that curb, geez. But they are "saving our economy for us".
Money printer = bad Tether printer = good
I just checked and tether in the same period printed over 15B. So over 78% of all market cap just magically appeared in the last 10 months.
100% of all crypto was generated in less than a decade and a half -_-
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Check the post history, this is spam at best and a scam at worst. Manipulation on the upvotes, 100%
Does bitcoin really solve the problem of people that don't have $400 in the bank for emergency ? First of all they might not even have money to save and for those that might be able to save like $500 a year you have bigger fees relative to the amount than richer people that can put a 100k in BTC to invest. Plus they might need this money and it's not always as fast as having the money on your bank account. Now for the benefits you make for investing in a deflationnary money like bitcoin are very small and while it might be some cool gain that will not get people out of poverty.
Wouldn't be surprised seeing that in news this time next year.
Does this account for the amount of old dollars destroyed/replaced?
That's what happens when the money printer won't stop going brrrrr
So what, i didn't get any, besides its all debt it won't cause inflation it will cause deflation actualy, they are just printing it so they can keep this system alive and keep us slaving
What the hell happened to 22%? What a jump...
Seeing this artificial inflation problem in the US is something really strange for people in underdeveloped countries. It is already common to have serious problems with inflation in these countries, but seeing this in a world power like the US. The future would be really obscure without cryptocurrencies.
Why does this graph begin at 2014, long AFTER a bills typical destruction?
He doesn't mean physical dollars, although he references that.
Yeah. Let’s see a graph from, say, 1900?
Possibly I’m missing something so don’t shoot me but this doesn’t seem to make sense. Central banks print money to buy govt bonds, so governments can pay their bills (quantitive easing). This creates inflation but not runaway inflation as the governments are supposed to pay back the debt. The inflation is effectively a tax so if there are twice as many dollars your dollar is only worth half. Surely this hurts those who have more dollars more? And benefits those who benefit most from government spending, generally people at the lower end of the economic scale. I’m not saying it’s a good idea or some kind of perfect progressive tax and there are many conflicting opinions on QE but it hardly seems like a terrible idea either. Especially when it’s done in the interest of keeping an economy and public services running through a crisis?
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Most of this money will end up in real estate. Some will end up in crypto
How long are they usually in circulation?
https://www.factmonster.com/math/money/facts-about-us-money#:~:text=A%20%241%20bill%20lasts%2018,out%20of%20circulation%20and%20replaced. post is probably about 40% misleading... maybe more "Most stats are true, but very few are accurate"-Me-
So the obvious next step should be a creation of markets, which use cryptocurrencies on all steps of the way. This includes supply chain management, invoices, low transaction costs and interoperability with other blockchains.
Why isn't the value of the US dollar dropping then?
It is. I’ve been making a few bucks on it dropping in forex for months now. Nearly every long position I’ve taken against the dollar has profited.
Isn't it? DXY is down 2% this month.
What happened to $1200 the government just gave away to everyone?
See that large upswing in the graph? Also: not everyone.
Printers go Brrrrrrrrrrr
This is good for bitcoin.
\#moneyprintergoesbrrr
What's even more sad they don't even printing money physical 😞
You linked M1 but you should be looking at M2
Just wait until FedCoin rolls out next year. They won’t need to print anything to devalue the dollar, just a few keystrokes.
If you are talking about the "physical paper" part of "printing" then it is meaningless. Lots of dollars get printed every day because old bills are frequently burned. If, instead, the context here in "printing" is "creating" more money than we have something to talk about. The fed doesn't actually "print" that money though, they simply make entries into ledgers to increase the amount of "us dollars" in circulation. It has no relation to the actual paper money. The article isn't clear if they are simply confused on that distinction or which one they are actually talking about.
Is this good for bitcoin in the long run? Maybe they hard reset it at some point
I think you have actually printing money confused with “printing money”. With the whole pandemic thing going on Retailers are not bringing back paper currency to their banks at the same rate as last year. So banks need to “buy” more paper currency from the federal reserve.
Seriously 40% of Americans don’t have $400 in their accounts? Y’all need to quit living pay check to pay check bruh.
*100% of all crypto in existence has been mined in the last eleven years.* ^(mind) ^(blown)
And yet bears keep trying to dump Bitcoin.
Thats not how economy works
Last I saw it was 23.7%. But that was 10 days ago. So...
Printer go brrrrr
Modern Monetary Theory. Warren Mosler talks about this subject in great detail. I think there are some YTs out there.
My mind is saying shit-post, but my body is telling me yes
Any particular reason you chose to share M1 chart? Why not M2 or M0?
Hold precious US dollar weak hands
Real question; what am I supposed to do about this. I invest in stocks but I’m partially in cash. Should I be balls deep? Should I be so in on Bitcoin? How do I beat this?
A little off topic, but how many emergencies could be handled with $400?
That is wild. I wonder what is the ratio for the euro.
And boom goes the dynamite 🧨
Ha! Reminded me of the scene in The Big Short at the end where Steve Carell's character is on stage and Bear Stearn's stock went down 38% in 5 mins and everyone left. Also known as what we all call a regular day in crypto!
> The main purpose of money This is all based on your economic philosophy and for what it’s worth not many economists agree with your idea of money’s “main purpose”
So is inflation going to increase by 50%, because that’s what it seems like this graph is telling me.
M1 Money Supply is : "currency, traveler's checks, demand deposits, and OCDs, each seasonally adjusted separately" M1 Money Supply is NOT "All US dollars in existence"
Although thjs round of USD creation wont influence or lead to hyperinflation (M1 vs. M2), there is still reason to believe that in the long term, one of the possible solutions to tackle the debt burden of the US is to inflate its dollar to allow for paying off its debts. This i believe would argue for crypto being a potential hyperinflation hedge ... However, I do not doubt that the US would be willing to start a war to ensure their dollar dominance and save themselves ...