On Mon, Dec 23, 2013 at 2:12 PM, meekerdb <meeke...@verizon.net> wrote:
> On 12/23/2013 9:07 AM, Bruno Marchal wrote:
> Crypto-currencies, like cryptography, can surely help to save the freedom
> of privacy and privateness.
> Crypto-currencies does not need to be a pyramidal con, like Quentin
> suspects. They just allowed to create new independent banks which can do
> their work "honestly" or not.
> "honestly" is not moral here, but it means that it is attempted, at the
> least, to not base economy on lies (which often happens to keep jobs
> despite they became obsolete).
> Money is both the most wonderful economical tool and the most horrible
> life goal.
> When money is used honestly, every one (good willing enough) win and is
> enriched. But the longer the play, the bigger the liars can win, so "those
> who make money the main goal" crack, and corrupt the system, which at that
> moment become pyramidal.
> It is basically a confusion between meaning and use, or goal and tool.
> Today, a part of the economy relies on lies, so it is more the actual bank
> system which seems to lead us (partially) to a pyramid.
> The existence of crypto-money can help by providing different competing
> economies, and can help in making transition (and awakening from the lies)
> more smooth.
> I don't see it as any different than gold or silver. Banks used to have
> reserves of gold or silver and they issued their own script money that was
> redeemable in gold or silver. BUT they always loaned much more script than
> they had gold or silver. They relied, quite reasonably, on the fact that
> in any given time interval, only few people would want to redeem their
> script in gold or silver.
> Now you may say this is "lying", but so long as not done to excess, it
> makes for good economics. Consider and extreme example: Suppose the
> 'banker' has no gold or silver at all but he's prepared to loan script
> anyway. Someone comes to him and wants to borrow $1000 to build a bridge
> over small river near the town. The banker loans him the script. He pays
> for material and labor, which he can do because people believe the script
> is backed by gold. The bridge gets built and so farmers can come to town
> much more quickly, productivity is improved and the town thrives, so more
> people deposit money in the bank and the banker can actually buy some gold
> to back up his script. "Artificially" increasing the money supply can be
> very useful; but just as with all kinds of interactions it depends a lot on
> trust. If nobody trusts anybody else, as now so many people automatically
> distrust their government, then the economy is dragged down.
One difference I see is that with crypto-currencies intermediaries are not
required for either, 1. safe keeping, or 2. transfers. If they are never
held by intermediaries then they have nothing to loan out.
> Such competitor money can help to follow the "non-monopoly rule". But they
> can be swallowed by other money, and they are not immune against new lies
> per se. (risk can be diminushed by investment in "real" education (≠
> When the bandits got power, count on them to exploit (disadvantageously
> for **you**) any solution you could find on the economical problem. You
> might need to encrypt it :)
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